Tokyo Stock Exchange-listed Tokai Tokyo and private market exchange ADDX recently announced a new partnership to offer fractional private market investment products to investors in Japan, after Tokai Tokyo secured a rare security tokens license from the Japanese regulator.
Tokai Tokyo is the holding company for a leading securities brokerage in Japan. The company offers investment and trading services to investors via its network of 144 offices in Japan. It holds consolidated net assets worth US$1.4 billion and has US$38 billion of client assets under management.
Last month, Tokai Tokyo received a license from the Japanese regulator – the Financial Services Agency (FSA) – that allows the company to deal in security tokens, also known as digital securities.
With the new license, Tokai Tokyo and ADDX plan to collaborate on security token issuances by Japanese real estate companies and banks. These future deals will be tokenised on the ADDX platform before being distributed by Tokai Tokyo to sophisticated investors in Japan.
In addition, Japanese investors will be able to trade the digital securities on the ADDX secondary exchange through Tokai Tokyo.
"It took a long time to get to this point, but we now have a license for security tokens. Our future collaboration with ADDX will be key to establishing an innovative business model in Japan, where a digital security exchange like ADDX does not exist yet," said Yuji Ban, Senior Managing Executive Officer, Tokai Tokyo Financial Holdings. "We and many others in Japan eagerly anticipate working with ADDX to create investment opportunities for Japanese investors and new financing options for issuers. We look forward to working with ADDX on a variety of security token projects in the near future.”
Oi Yee Choo, Chief Commercial Officer of ADDX, shared, "Japan has one of the most forward-thinking regulators on the issue of digital securities – alongside those in a handful of other jurisdictions, including Singapore. This prevailing view has once again been validated by the Japanese regulator’s latest move to grant a new security tokens license.
"As Japan embraces innovation in the capital markets, individuals will, no doubt, be the chief beneficiaries. The community of individual sophisticated investors in Japan is deep and sophisticated... Tokai Tokyo is one of the oldest and most trusted financial companies in Japan, with roots dating back to 1908. We expect this partnership to yield multiple deals over the next few quarters. The possibilities are exciting and limitless, given how the two companies share the same vision on innovation in the financial services and bring complementary strengths to the table."
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