Japanese Consortium Form on Security Token Research
Mitsubishi UFJ Financial Group, Japan’s largest financial group and the fifth-largest bank in the world in terms of assets, is leading a 22-member research consortium to develop standards around security token management.
The group being called the Security Token Research Consortium. It includes security issuers, broker dealers, and technology companies. Notably, the two largest telecommunications companies in Japan NTT Docomo Inc. and KDDI Corp. are members.
Securitize, a firm that enables the issuance and management of digital securities, will be the only issuance platform provider for the consortium. The consortium will be the company’s first opportunity to tokenize fixed-income assets, including bonds.
The consortium is pursuing ways to develop, offer and onboard financial transactions services using blockchain, with a focus on automatic settlement for securities and funds. It plans to develop a dedicated security token blockchain called “Progmat” to provide a platform for managing securitized assets, including trust functions to minimize counterparty risk.