Japan’s leading banking institution Sumitomo Mitsui Trust (SMT) has announced its willingness to enter the crypto ecosystem in partnership with Japanese exchange Bitbank. Te purpose is to launch a company that will focus on offering institutional-grade custody for digital assets and NFTs.
Sumitomo Mitsui Trust obtains 15 % of the shares of the Japan Digital Asset Trust company, the other 85% is from Bitbank, with the aim of absorbing “the local institutional market that still sees the custody issue as an element dissuasive to invest in these new products”.
The Japan Digital Asset Trust company plans to start its activities before the end of the year, with the launch of a “stablecoin in yen“, protected by the legal rule that makes it easier for financial entities to issue this type of product.
In order to materialize its plans, the financial entity SMT has 2 million dollars of committed capital for the launch of its new company and expects to raise a total of USD 78 million dollars.
For Sumitomo Mitsui Trust, investors feel greater security and comfort if the custody of digital assets is under the responsibility of recognized financial institutions “rather than just exchanges, which often do not face the same scrutiny from investors. established regulatory bodies.
Banks are approaching cryptocurrencies
As the cryptocurrency ecosystem was impacted by geopolitical factors, public and private institutions moved away. However, now the signs indicate that this gap is getting smaller and this is demonstrated by the Japanese banks.
The announcement of different Japanese banks is made after the report published by the Bank for International Settlements (BIS), where it noted that regulatory obstacles few financial entities offer services related to cryptocurrencies.
In the report, the BIS highlights that it is necessary for banks to assume greater exposure to cryptocurrencies so that they can have a greater capacity for innovation and increase financial inclusion.
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