The Japan Security Token Association (JSTA), an organization that is promoting building an ecosystem that uses security tokens, announced on November 18 that it has concluded a basic agreement with the Luxembourg security platform operator Tokeny Solutions to work together on activities within Japan for the purpose of solving issues concerning security tokens by using blockchains.
Going forward, both parties will collaborate with financial institutions in Japan, such as banks and securities companies, and regulatory bodies to shed light on security token issues and propose ways to solve those issues.
Security tokens are being positioned as real stocks and securities that are managed on a blockchain as tokens. In recent years, companies that seek to procure capital through security token offerings (STOs) have begun to appear, prompting movements by some Japanese cryptocurrency exchanges to make preparations to enter the securities business from the perspective of accommodating these customers.
The JSTA was established on May 27, 2019 as a non-profit organization with the purpose of building an ecosystem that uses security tokens in Japan and contributing to stable development of the Japanese economy. The organization has been actively promoting initiatives related to these goals, such as joint trials with the major Japanese telecommunications group NTT to convert real estate into securities in October.
*This article was written by FISCO.