- Securitize Japan and NTT Data have launched a digital securities platform that will enable bond issuers to access investor information.
- The platform aims to create direct relationships between bond issuers and investors, similar to how Japanese stockholders are treated as “fans” of companies.
- Future plans include digital bond issuance and tokenization of other financial assets to support Japan’s shift from savings to investments.
Securitize Japan and NTT Data have unveiled a new digital securities platform designed to share investor information with bond issuers. This collaboration builds on their 4.5-year partnership in security token services. The platform leverages NTT Data’s connection to Japan Information Processing (JIP), which operates Japan’s largest bond issuance and payment agent solution.
Securitize, known in the United States as the issuer of BlackRock‘s BUIDL money market fund, will provide the infrastructure for this new platform. The BUIDL name originated from a Japanese web3 development company that Securitize acquired.
Transforming Bond Investor Relationships
The platform addresses a unique aspect of Japanese financial markets. Currently, most bonds in Japan are sold through securities firms, leaving issuers without direct contact with investors. This contrasts with the Japanese stock market, where companies treat shareholders more like fans and offer various perks.
With the new digital securities platform, NTT Data and Securitize aim to create similar relationships between bond issuers and bondholders. This will be possible when investors consent to share their information, enabling issuers to establish direct marketing relationships with their investors.
Future Expansion Plans
This investor information sharing represents just the first phase of their collaboration. The partners have outlined a roadmap that includes digital bond issuance and eventually tokenizing additional financial assets. This strategy aligns with the Japanese government’s initiative to transition from savings to investments, aiming to redirect dormant bank savings into diverse investments that stimulate economic growth.
One key objective is to enable regional financial institutions to support bond issuance for companies, helping to revitalize local economies. The platform envisions banks participating as bond administrators alongside issuers and securities firms.
It’s worth noting that NTT Data holds an 11.7% stake in Progmat, Japan’s largest digital securities platform, making it the second-largest shareholder after founder MUFG (42%). MUFG is also an investor in Securitize, creating an interconnected network of financial technology partnerships in Japan’s evolving digital securities landscape.
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