Sumitomo Mitsui Trust Bank Launches Japan’s First FIEA Compliant Asset-backed Security Token on Securitize

Securitize Japan, a wholly-owned subsidiary of Securitize, a liquidity and compliance platform for digital asset securities with more than 150 issuers and 200,000 investors, today announced Sumitomo Mitsui Trust Bank (SMTB) has completed Japan’s first asset-backed security token pilot issuance on the Securitize platform.

For the transaction, SMTB created beneficiary certificates representing the asset-backed securities and tokenized them using the Securitize platform.  SMTB utilized Securitize’s platform, including the administrator control panel which allowed it to manage investors and the beneficiary rights ledgers, as well as issue the security tokens.

This is Japan’s first credit-rated security token, with an a-1 rating from Japan’s Rating and Investment Information.  The security tokens are also compliant according to the FIEA.

Hirohito Niji, general manager of Structured Trust Products Department, Sumitomo Mitsui Trust Bank, said, “We are pleased to have successfully launched the asset-backed STO as a novel effort, leveraging on our strength as a trust bank. We are committed to proactively develop and deliver innovative solutions to our customers with their changing needs, by combining cutting-edge digital technologies and our conventional trust bank expertise.”

“We are honored to be a part of this groundbreaking deal with SMTB,” Eiji Kobayashi, country head, Securitize Japan, added. “I hope this paves the way for a more active and innovative security token ecosystem in Japan, and the first step toward better serving the financial communities and capital markets in Japan.”

Securitize will continue to fully support SMTB for their future STO clients and business.