The Japanese subsidiary of Phillip Securities invested in the Sony production of Hero Island, based in post war Japan. Now it’s planning a security token offering, enabling consumers to invest in the film via digital securities. The technology for the issuance is provided by Securitize Japan, whose parent is backed by BlackRock. The movie is scheduled for release in 2025 but the small lot token issuance of Yen 100,000 ($629) will launch next week on a permissioned blockchain.
Investors can expect to participate in the movie’s revenues, including theatrical distribution, video and broadcast sales. Depending on the size of their investment, they will also receive value added bonuses. That might include merchandise, bonus footage, attending a movie premiere, receiving a promotional poster, or even the inclusion of the investor’s name in the credits. However, it seems the first step is receiving a portion of the box office receipts.
Phillip Securities said the issuance is motivated by a belief in a change in the way movies are produced. It sees a new era in which “producers and supporters work together to create and nurture movies.”
This isn’t the first use of blockchain for movie funding. For example, Wesley Snipes was involved in a blockchain-based movie fund in 2019. However, it’s the first we’re aware of involving an institution such as Phillip Securities. During the NFT boom, many movies had associated NFTs, but a security token is next level.
It’s especially appropriate for Japan, where there’s a culture of retail investors receiving rewards from the companies in which they invest. There’s even a name for shareholder rewards, yuutai. Japan’s largest bank, MUFG, developed the Progmat UT (utility token) solution to support shareholder rewards.
While Japan is ahead of the game in security token issuances, most issuances have been for real estate or digital bonds.
Phillip Securities and tokenization
Meanwhile, Singapore headquartered Phillip Securities isn’t entirely new to the tokenization scene. For example, it participated in a DLT fund settlement trial in 2022. However, it’s now ramping up its activities. This is its first security token issuance, and it is also taking part in Singapore’s Project Guardian tokenization trials with Hamilton Lane and the AltaX digital securities exchange.
