Led by SBI Securities, major Japanese brokerages including Nomura, Daiwa, Rakuten, and Monex have joined together to form the Japan Security Token Association (JSTA).
The Association will be responsible for regulating the issuance of blockchain-based digital securities, according to a report by Bitcoinist.
The move coincides with a growing interest in blockchain technology, seen in Japan as having the potential to disrupt and improve businesses in the country. It is expected that the issuance of security tokens by the JSTA will replace the traditional securities listing system.
The initiative signals greater support for the cryptocurrency industry among Japanese brokerages. Facebook’s Libra was cited as one of the reasons prompting the JSTA’s founding.
Go Masuda, Chairman of the Japan Security Token Association, believes that Facebook’s plans for its entry into the crypto space indicate that “the industry is now entering a new phase of commercial adoption.”
“The industry lacked a good use case of blockchain technology. There have been no killer apps since bitcoin,” added Masuda.
One of the Association’s members, e-commerce conglomerate Rakuten, ventured into the crypto space in September last year, acquiring crypto exchange Everybody’s Bitcoin and rebranding it as Rakuten Wallet in August 2019.
Another JSTA member, Monex, has been investing in crypto and blockchain projects since May 2018. The firm took over crypto exchange Coincheck, which suffered a hack that caused US$420 million in damages.
Monex is reportedly applying for membership in the Libra Association. No further details have been shared regarding its application status.
Meanwhile, Visa and Mastercard are allegedly reconsidering their own involvement in the Libra Project, possibly allowing for other organizations to join.
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