Japan’s First-Ever a-1 Rated Security Token Launched by Sumitomo
As per the latest reports, the Sumitomo Mitsui Trust Bank has reportedly launched a securities token that is backed by assets. The sources have confirmed that it is the first-ever securities token backed by assets that has been launched by the Sumitomo Bank (SMTB).
The reports reveal that the Sumitomo Bank (SMTB) managed to achieve this milestone with the help of Securitize. Both firms have reportedly formed a partnership on Monday, March 29, 2021, in order to execute this plan together.
It has been revealed by the sources that the securities token would be one of its kind to be approved and adherent to the financial activity in Japan. As a result of being adherent to the FIEA, it has been able to be launched in the Japanese market and will continue to facilitate users.
The reports have confirmed that the Rating and Investment Inc., which is a Japanese rating agency has approved an a-1 rating for the securities token. This rating means that the securities token will highly trust among the investors and stakeholders in Japan and internationally in the long run.
The analysts are speculating that the application will be able to prove its worth and importance through short-term obligations.
It has been confirmed that the token was created and based on tokenizing beneficiary certificates that were paper-based. This beneficiary token tends to prove the ownership of the asset through beneficial certificates that are paper-based.
Apart from the above, the Sumitomo Bank (SMTB) has also established by a trusted company. The major role that the trust company will serve would be to go ahead and manage investments that are underlying securitized investments.
The team has confirmed that it used the tokenization platform, Securitize in order to issue the production. It was back in 2017 when Securitize was founded in the United States of America.
Afterward, the platform went ahead and launched a Japanese division that would secure the investments. The sources have confirmed that these investments will be coming from some of the major leading companies from the entire country. At present, some of the major and most reliable companies trying to make things normal include Softbank, SBI, and Sony.
Later on, in March 2020, the firm went ahead and introduced a real estate investment platform after forming a partnering with LIFULL, which is based in Japan.
As of now, the Sumitomo Bank (SMBT) is a member of the Japan Security Token Association where it is accompanied by other companies. The names of the other companies include Softbank and NTT, which is a local telecom giant.
It was back in October 2016, when the SMBT had started exploring the possibilities of adopting blockchain and other technologies.