Hitachi plans to issue a tokenized green bond. It will use a green tracking hub co-developed with JPXI to track the reduction in CO2 emissions and make the data available to investors. Nomura will distribute the tokens to investors. The securities firm is also the majority owner of BOOSTRY, the provider of the “ibet for Fin” tokenization platform used for the green bonds.
These four organizations previously worked together last year on a digital green bond issued by Tokyo Stock Exchange operator JPX. Hence, this is another initiative to promote security token usage.
Most conventional securities issuances involve a central securities depository (CSD). However, digital securities often use blockchain as the securities registry instead of the CSD, as is the case here. Not all jurisdictions support that from a legal point of view. That’s one of the reasons for Europe’s DLT Pilot Regime and the UK’s Digital Securities Sandbox.
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