Coindesk Logo

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

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

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.

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

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

AccessTimeIconJun 22, 2020, 7:00 AM
Updated Aug 19, 2021, 2:41 AM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

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.

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, 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.