Japanese company Securitize unveils digital securities platform in partnership with NTT Data
In a significant move to modernize Japan's financial market, Securitize Japan and NTT Data have joined forces to advance digital bond issuance and the tokenization of financial assets. This partnership, which includes Progmat as a key player, is expected to bring about increased efficiency, enhanced liquidity, improved transparency, cost reductions, and broader market participation.
Over the past 4.5 years, Securitize and NTT Data have collaborated on security token services. One of the primary goals of this collaboration is to use the platform to support bond issuance for companies aiming to revitalize local economies. In Japan, most bonds are sold via securities firms, and issuers often lack investor contact details.
The digital securities platform will leverage Securitize's infrastructure, enabling bond issuers to have a more direct marketing relationship with their investors. This will streamline the process, making it more efficient and speedy. The platform's vision includes engaging banks as bond administrators, in addition to their role as issuers and securities firms.
The partnership also aims to engage regional financial institutions as bond administrators, fostering a more decentralized and inclusive financial ecosystem. This aligns with a government program to shift from savings to investments.
MUFG, the founder of Progmat, holds the largest stake in the platform, while NTT Data is the second largest shareholder (11.7%) in Japan's biggest digital securities platform, Progmat. MUFG is also an investor in Securitize.
The next steps in the collaboration include the issuance of digital bonds and the tokenization of other financial assets. This will potentially increase liquidity and accessibility by enabling fractional ownership and easier transfer of tokenized assets. The improved transparency and security via blockchain technology that records asset ownership immutably will also be a significant advantage.
This strategic collaboration is consistent with the broader industry trend in Japan and globally towards digital asset ecosystems, aiming to realize more flexible and inclusive financial markets through tokenization and digital bonds. The partnership is also in line with NTT Data's broader goals of expanding digital financial services and leveraging blockchain for secure asset management.
While the precise roadmap and detailed benefits are not explicitly listed in the recent publicly available documents, the nature of such collaborations and industry trends suggest that the future plans involve driving adoption of digital securities and tokenized financial products in Japan. This could potentially benefit issuers, investors, and intermediaries by creating a more efficient, transparent, and accessible market environment.
[1] Source: Securitize Press Release, "Securitize and NTT Data Announce Strategic Collaboration to Advance Digital Bond Issuance and Tokenization in Japan," [date], URL [4] Source: NTT Data Press Release, "NTT Data and Securitize Collaborate on Digital Securities Platform in Japan," [date], URL
Note: The above benefits are inferred from the nature of such collaborations and industry trends. The precise roadmap and detailed benefits are not explicitly listed in the recent publicly available documents.
- The partnership between Securitize Japan and NTT Data, along with Progmat, plans to extend tokenization to other financial assets, such as digital bonds, which could increase liquidity and accessibility.
- By engaging regional financial institutions as bond administrators, the collaboration seeks to create a more decentralized and inclusive financial ecosystem, aligning with a government program that encourages shifting from savings to investments.
- Leveraging NTT Data's expertise in digital financial services and blockchain technology, the partnership aims to improve the transparency and security of asset ownership recordings through immutable blockchain technology.
- The strategic alliance between Securitize, NTT Data, and Progmat is part of a broader industry trend in Japan and globally, focusing on developing digital asset ecosystems and realizing more flexible and inclusive financial markets through tokenization and digital bonds.
