Japanese Bank Sumitomo Mitsui Trust to Establish Digital Asset Custodian: Report
The bank's pivot to digital assets comes alongside a global banking shift toward cryptocurrencies.
Japanese bank Sumitomo Mitsui Trust will form a new company to offer digital asset custody services to institutional investors, according to a report by Nikkei Asia.
- Named the Japan Digital Asset Trust, the company will target institutional investors perturbed by the risk of cryptocurrency theft.
- The decision to create the the unit comes after an announcement earlier this month from Japanese rival Nomura (NMR) that it is launching a subsidiary that will give institutional clients access to cryptocurrencies. It also represents a global shift towards the asset class, including banks such as BNP Paribas beginning to use JP Morgan's (JPM) blockchain-based network Onyx for fixed income trading.
- The custody service will be a joint-venture between Bitbank, the largest cryptocurrency exchange in Japan, which will own 85%, and Sumitomo Mitsui Trust, which will own 15%.
- Japan Digital Asset Trust will have $2.3 million in initial capital with hopes to expand to $78 million through additional investment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.