In Japan, the popularity of security tokens is growing as business giants such as Mitsubishi UFJ, Mizuho Bank and Rakuten launch offerings bearing interest in “electronic money.” The companies said in a press release that investors will be paid in Rakuten Cash tokens, and the new ST offering will be available on the blockchain-based Progmat platform.
“This will be the first publicly offered bond in Japan where all interest, excluding taxes, will be paid in e-money,” according to CoinPost.
Rakuten, one of Japan’s largest electronics and entertainment providers, has created Rakuten Edy, a modern payment solution. In addition, the company oversees a fast-growing cryptocurrency exchange.
Meanwhile, Progmat is a Mitsubishi UFJ project . In March 2023. Mitsubishi UFJ launched a pilot Progmat and has since partnered with cryptocurrency and blockchain start-ups to launch stablecoin offerings.
The companies have announced that their first offering will be the Daiwa Securities Group 1st Unsecured Security Token Bond. They intend to release security tokens worth about $6.6 million, which will be valid for one year. Investors can buy the coins until March 21 at the current interest rate of 0.8%.
In addition, the companies said that “in the future” they intend to “use the issuance of bonds powered by security tokens as an opportunity to provide new financing methods for issuers considering non-fiat interest payments.” Additionally, they claimed that they intend to “create attractive investment opportunitiesfor investors.”
Further progress on the security token front is likely to come from SBI, Rakuten’s rival in the securities industry . SBI has a number of cryptocurrency-related businesses both at home and abroad. These include an e-sports team paid in cryptocurrencies and a cryptocurrency exchange under the SBI brand. In 2020, the company announced plans to create digital stock exchanges based on blockchain technology.
