Japanese Mega-firms Mitsubishi UFJ, Rakuten, Mizuho to Launch Security Tokens Offering
Security tokens are set for a boost in Japan, where business giants including Mitsubishi UFJ, Mizuho Bank, and Rakuten will launch an offering that pays interest in “electronic money.”
In a press release, the firms explained that the new ST offering will take place on the blockchain-powered Progmat platform, with investors paid in Rakuten Cash tokens.
Per the media outlet CoinPost, the offering will be Japan’s “first publicly offered bond whereby all interest, excluding taxes, is paid in electronic money.”
Rakuten Edy is a payments solution masterminded by Rakuten, one of Japan’s biggest e-commerce and entertainment firms. The company also operates a fast-growing crypto exchange.
Progmat, meanwhile, is the brainchild of Mitsubishi UFJ. The latter is Japan’s biggest bank.
Mitsubishi UFJ began piloting Progmat in March 2023, and has since teamed up with crypto and blockchain startups to launch stablecoin offerings.
Rakuten’s securities and payments arms will join the newest venture along with Mizhuho and two Daiwa Securities affiliates. Daiwa is Japan’s second-largest securities provider.
The firms said that their first offering would be named the Daiwa Securities Group 1st Unsecured Security Token Bond (literal translation).
The parties plan to release around $6.6 million worth of the security tokens, which will mature in a year.
Currently, the tokens’ interest rate is 0.8%, and investors have until March 21 to buy coins.
The companies also said that in the “future,” they plan to “use the issuance of security tokens-powered bonds as an opportunity to provide new financing methods for issuers considering non-fiat interest payments.”
They also claimed that they plan to “create attractive investment opportunities for investors.”
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