Securitize's Japan Subsidiary Becomes First International Firm to Join Self-Regulatory Group

Securitize Japan joined the Japan Security Token Offering Association, becoming the first international firm to do so.

Jun 22, 2020 at 7:00 a.m. UTC
Updated Sep 14, 2021 at 8:54 a.m. UTC

Securitize Japan, a subsidiary of U.S.-based Securitize, became the first global token issuance platform to join the Japan Security Token Offering Association (JSTOA), the company announced Thursday.

Securitize co-founder and Chief Executive Carlos Domingo told CoinDesk that a leading Japanese financial services company, SBI Holdings, founded JSTOA, and is a Securitize shareholder. 

Six major Japanese brokerages formed the association last year in a bid to consolidate expertise on securities and develop security token business opportunities in Japan. It is a state recognized financial instruments and exchange association that operates as a self-regulated entity. 

U.S.-based Securitize could not join the association until now because JSTOA only accepted Japanese-regulated entities into its ranks. Securitize Japan is regulated in the country.

“So we had already talked to them, and some of the members about how as soon as the association was open to non-regulated members, we [wanted] to be the first company but we are not,” Domingo said. 

Headquartered in San Francisco, Securitize expanded its operations to Japan last year after Japan-based VC firm Global Brain invested in the platform, and has since established a subsidiary company. 

Domingo, who lived in Japan for many years and speaks the language, said there were a number of reasons why Securitize wanted to establish business ties with the country. 

“Japan has been a very forward-thinking country in terms of blockchain and crypto,” Domingo said. 

According to Domingo, Japanese investors are very active in the blockchain space, and Japan has comprehensive laws on cryptocurrency regulation, although it has had trouble making a clear distinction between digital assets and cryptocurrency. Large financial services institutions are also inclined towards taking advantage of adopting blockchain technology and digitization for securities, Domingo added. 

“So, if you put all those things together, we definitely saw that this was an opportunity and moreover, none of our competitors had any presence in Japan,” Domingo said. 

In his view, cracking the Japanese market is not an easy task for foreign entities. 

“Japan can be intimidating for doing business,” he said, adding that the lack of U.S. or European securities platforms operating in the country gave them a competitive advantage. 

The chairman of JSTOA and chief executive of SBI Holdings, Yoshitaka Kitao, said in a statement to the media that Securitize brings years of experience and proven market success in developing and deploying security token technology. 

“We are very proud to have them join the JSTOA, and look forward to working alongside them,” Kitao added.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Trending

1
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
2
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
3
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
4
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown