Japan’s largest bank and fifth biggest bank by assets, Mitsubishi UFJ Financial Group, is forming a new Security Token Research Consortium with 21 other members.
The leading Financial Services provider in Japan, Mitsubishi UFJ Financial Group, is the lead firm in a project that set revolutionize fixed-income assets by tokenization. This consortium comprises of 22 members who have invested in research to develop a standardized ecosystem for security tokens.
The diverse group is made up of tech companies, brokers, dealers and security issuers. Most notably is the financial and reputational muscle of the firms involved; KDDI Corp and NTT Docomo Inc which dominate the Japan Tech market are among the stakeholders. Securitize, a token-oriented firm, dealing in issuance and management is the only security issuer featured in the consortium.
According to Carlos Domingo, the CEO of Securitize, this will be their first opportunity to create security tokens that represent market instruments like bonds. The consortium plans on developing a blockchain network ‘Progmat’ where firms like Securitize will be able to facilitate issuance and manage the affiliated risk.
Back in March, Japan through its authorities passed a law that classifies security tokens under the same bracket as liquid shares. This has been a pacesetter in the country’s blockchain and crypto space given the ability to trade the digital assets within regulation. The Mitsubishi UFJ lead consortium will further seek a patent for the ecosystem design they will build around security tokens.
MUFG Blockchain Milestones
The Japan-based bank is working with other entities on blockchain projects as well. Its collaboration with Alkami Technologies is set to bear fruits in 2020 when the two release a blockchain payments network. In addition, the Financial Services giant had partnered with NTT Data to create a blockchain network for trade between Japan and Singapore; this is currently undergoing test procedures for a final product release. Other projects include KYC improvements in which they are working with OCBC Bank and HSBC Singapore.