Japanese Bank Sumitomo Mitsui Trust to Launch Crypto Custody Business

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One of the largest Japanese banks and the Tokyo-based cryptocurrency exchange have teamed up to lure customers away from competitors and motivate large investors to invest in digital assets.

Sumitomo Mitsui Trust Bank announced that it will open a digital asset custody subsidiary in partnership with Tokyo-based cryptocurrency exchange Bitbank. informs Nikkei Asia. The new structure will be called the Japan Digital Asset Trust. The bank will own 15%, the remaining 85% will be controlled by the crypto exchange. Japan Digital Asset will focus on holding cryptocurrencies and institutional investors’ non-fungible tokens.

It is reported that the main goal of the project is to occupy the local institutional market, which still has a problem with the storage of digital assets, which is a deterrent to investment in the industry. Sumitomo Mitsui Trust Bank believes that investors will be more comfortable storing their digital assets in a financial institution that is recognized around the world, and not just on cryptocurrency exchanges that are not strictly monitored by regulators.

The capital of Japan Digital Asset at the initial stage will be about 300 million yen ($2.3 million), but it is expected that other investors will evaluate the initiative and the project will be able to reach a capital of 10 billion yen ($78 million).

The Japan Digital Asset Trust is also set to launch its own yen-pegged stablecoin.

The launch of Japan Digital Asset Trust is planned as early as this year, as the bank’s competitors such as Japanese financial holding company Nomura and crypto-financial tools architect Crypto Garage are also forming a joint venture to offer similar services to their clients.

Recall that earlier the leadership of the Central Bank of Japan said that it was going to carefully test the digital yen, avoiding large-scale pilot projects, as China does.


Source: Bits

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