Japan’s third largest banking group Mizuho Trust & Banking plans to tokenize real estate and issue security tokens before the end of the year, according to the Nikkei. The Trust divisions of the two largest banking groups – MUFG Trust and Mitsui Trust – were involved in real estate security token issuances last year.
The country is one of the most advanced in terms of the adoption of security tokens by financial institutions, following changes in the law that came into effect in May 2020.
As with other banks, Mizuho hopes that tokenization will enable faster, more efficient token issuance and make the asset more liquid for investors.
Mizuho will use the BOOSTRY platform launched by Nomura and Nomura Research and in which SBI is an investor. Last week, the Japan Exchange Group (JPX), which runs the Tokyo Stock Exchange, said it would be using BOOSTRY for its green bond issuance.
The other major security token platform is MUFG-owned Progmat, which was used by both MUFG Trust and Mitsui Trust. Both Progmat and BOOSTRY are based on R3’s Corda enterprise blockchain.
MUFG’s Progmat is also developing a stablecoin issuance framework to allow multiple banks to issue coins to settle security token transactions.
