Sanin Godo Bank explores digital security token issuance

Sanin Godo Bank, NTT Data, and Securitize Japan have launched a formal study to develop a model for utilizing digital securities, also known as security tokens (ST), to facilitate regional financing.

The initiative aims to explore the feasibility of Sanin Godo Bank issuing its own corporate bond-type security tokens. If successful, this would mark the first instance of a regional bank in Japan issuing and selling such tokens directly to investors. The proposed system would allow investors to participate via internet banking without needing to open new securities accounts, using existing bank accounts for payments and interest.

The collaboration intends to expand these services to local businesses and municipal governments. This follows legislative developments in Japan, specifically the 16th Local Decentralization Act, which enables the issuance of municipal bonds through digital securities starting April 1, 2027. By leveraging blockchain technology, the partners hope to diversify funding options for regional entities and increase participation from individual investors in local bond markets.