Securitize Japan and NTT Data have launched a digital securities platform, which will initially share investor information with bond issuers. The two companies first collaborated 4.5 years ago for security token services. As context for the deal, NTT Data owns Japan Information Processing (JIP), the operator of Japan’s largest bond issuance and payment agent solution.
In the United States, Securitize is best known as the issuer of BlackRock’s BUIDL money market fund. BUIDL was the name of a Japanese web3 development company that Securitize acquired. The digital securities platform will use Securitize’s infrastructure.
Meanwhile, in Japan most bonds are sold via securities firms, and the issuers don’t have the investor contact details. Japanese stockholders receive various perks from the companies they invest in, and are treated more like fans.
NTT Data and Securitize aim to enable something similar for bondholders using the digital securities platform, provided the investors are willing to share their information. This will enable bond issuers to have a more direct marketing relationship with their investors.
That is the first part of their collaboration. The next step is the issuance of digital bonds and the ultimate phase will involve the tokenization of other financial assets. This fits with a government program to shift from savings to investments. Instead of savings lying dormant in bank accounts, it will help the economy if savers diversify into other investments.
One of the goals is to use the platform to enable regional financial institutions to support bond issuance for companies to revitalize local economies.
Hence, they envision engaging banks as bond administrators as well as issuers and securities firms.
NTT Data is also the second largest shareholder (11.7%) in Japan’s biggest digital securities platform, Progmat. Only Progmat’s founder MUFG has a larger stake (42%). MUFG is also an investor in Securitize.
