The new firm intends to begin operations in 2022.
On May 24, the financial holding organization Sumitomo Mitsui Trust Bank announced that it would enter the crypto custody business. To do so, the company successfully formed a partnership with Japanese-based cryptocurrency exchange Bitbank to establish Japan Digital Asset Trust (JADAT).
JADAT will concentrate on providing custodial services for digital assets such as NFTs, stablecoins, security tokens on blockchains, crypto, as well as auditing and wallet insurance. Supposedly, the company will aid institutional investors in entering the Japanese digital asset market.
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As of now, Sumitomo Mitsui Trust Bank and Bitbank only signed a memorandum of understanding (MOU), an official document describing a bilateral agreement between the two parties to look into the possibility of the financial holdings company investing in JADAT.
According to the announcement, Sumitomo Mitsui Trust Bank would own 85%, whereas Bitbank would possess the remaining 15% of the newly established custody firm.
Moreover, according to various sources, the new business intends to introduce a yen-pegged stablecoin, with legislation permitting banks to do so.
The company's capital is allegedly 300M yen ($2.3 million) at the outset, with the two corporations anticipating more investors to jump in to bring the total to 10B yen ($78 million).
Bitbank is a recently established cryptocurrency exchange service offering highly accurate and reliable market insights for trading BTC and LTC that was launched back in 2014.
Sumitomo Mitsui Trust Bank is the largest trust firm and the fifth-largest bank located in Japan measured in terms of assets.
On May 18, the Japanese-based biggest investment bank Nomura announced that it would introduce a new extension concentrating on NFTs, DeFi, and crypto. The Global Chief Digital Editor Jez Mohiden is expected to launch an additional subsidiary later this year to aid institutional investors in trading non-fungible tokens and cryptocurrencies.
