ADDX and Tokai Tokyo will provide access to digital titles in Japan after receipt of a security token license by Japanese Financial services agency.
ADDX, formerly known as iSTOX, is an online marketplace for digital securities, including fractional shares. ADDX has been approved by the Singapore Monetary Authority to operate as a recognized market operator and also holds a capital markets license.
Listed on the Tokyo Stock Exchange, Tokai Tokyo is the holding company of a securities brokerage firm in Japan. The company provides investment services through its network of 144 offices in Japan and has consolidated net assets of US $ 1.4 billion and manages US $ 38 billion in client assets.
With the new license, Tokai Tokyo and ADDX plan to collaborate on the issuance of security tokens by Japanese real estate companies and banks. The two companies say these future deals will be tokenized on the ADDX platform before being distributed by Tokai Tokyo to investors in Japan. Investors will also be able to trade the digital assets on the ADDX secondary exchange through Tokai Tokyo.
Tokai Tokyo will be the first company in Japan to distribute security tokens tradable on a secondary exchange.
Tokai Tokyo was also a lead investor in ADDX’s US $ 50 million Series A fundraiser in January 2021.
Yuji ban, Senior Managing Director of Tokai Tokyo Financial Holdings, said:
âIt took a long time to get there, but we now have a license for the security tokens. Our future collaboration with ADDX will be essential to establish an innovative business model in Japan, where a digital security exchange like ADDX does not yet exist. We and many others in Japan look forward to 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, said that Japan has one of the most forward-thinking regulators when it comes to digital securities:
âThis dominant view has once again been validated by the Japanese regulator’s latest decision to grant a new security token license. As Japan embraces innovation in capital markets, people will undoubtedly be the primary beneficiaries. The community of sophisticated individual investors in Japan is deep and sophisticated. Historically, they have shown a strong interest in real estate investments. But the opportunities available to them – whether in real estate or other types of assets – are reduced due to the high minimum investment sizes in private markets. Digital securities can split investments, helping individuals diversify their portfolios and invest with a strategy and asset mix closer to that of family offices or institutions. This promises several positive ripple effects – from a better retirement fit to a more equitable distribution of wealth. “
She said they expected the partnership to result in several deals in the coming quarters.
âThe possibilities are exciting and limitless, as the two companies share a common vision for innovation in financial services and bring complementary strengths to the table. “