In a groundbreaking move, major Japanese corporations, including Mitsubishi UFJ, Mizuho Bank, and Rakuten, are set to launch a novel Security Tokens (ST) offering that introduces a unique payout system in “electronic money.”

Per information from CoinPost, this marks Japan’s inaugural publicly offered bond where all interest, excluding taxes, will be distributed in electronic currency. The offering will take place on the blockchain-driven Progmat platform, with investors receiving payments in Rakuten Cash tokens.

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• Mitsubishi UFJ, Mizuho Bank, and Rakuten collaborate for a groundbreaking Security Tokens (ST) offering.
• The ST offering on the Progmat platform introduces a pioneering payout mechanism in “electronic money,” a first in Japan’s publicly offered bonds.
• The joint venture plans to launch the Daiwa Securities Group 1st Unsecured Security Token Bond, offering approximately $6.6 million worth of security tokens with a unique 0.8% interest rate, maturing in a year.

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Japanese Business Giants Mitsubishi UFJ, Rakuten, and Mizuho to Introduce Innovative Security Tokens Offering

Rakuten, a significant player in Japan’s e-commerce and entertainment sector, developed Rakuten Edy, a prominent payment solution. Notably, Rakuten also operates a rapidly growing crypto exchange. Meanwhile, Progmat, initiated by Mitsubishi UFJ, the country’s largest bank, commenced its pilot phase in March 2023. Since then, it has collaborated with various crypto and blockchain startups to introduce stablecoin offerings.

The joint venture includes Rakuten’s securities and payments divisions, along with Mizuho and two affiliates of Daiwa Securities, Japan’s second-largest securities provider.

The maiden offering, named the Daiwa Securities Group 1st Unsecured Security Token Bond (literal translation), is expected to release approximately $6.6 million worth of security tokens, maturing in a year. The current interest rate for the tokens is 0.8%, with investors having until March 21 to make purchases.

Looking ahead, the companies expressed their intention to leverage security token-powered bonds for new financing methods, focusing on non-fiat interest payments. They also aim to create appealing investment opportunities for investors.

Rivalry in the security tokens arena is likely to intensify, with SBI, a prominent competitor of Rakuten in the securities industry, poised to make further advancements. SBI is a multiline crypto-related business, with an e-sports team as its crypto asset payment receiver, and SBI crypto exchange, a subsidiary. In 2020 SBI announced that they have plans for setting up Network exchanges of the blockchain technology-powered digital securities.

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