Nomura contributes to NRI’s digital asset bond and digital bond offering

Maria Nikolova

This is the first bond offering using blockchain technology by a Japanese issuer.

Nomura Securities Co., Ltd., a subsidiary of Nomura Holdings Inc (TYO:8604), and BOOSTRY Co., Ltd., a joint venture between Nomura and Nomura Research Institute, Ltd. (NRI), today announce that they have supported NRI on its digital asset bond and digital bond offering. This marks the first bond offering using blockchain technology by a Japanese issuer.

The digital asset bond was offered directly to investors by NRI, while Nomura Securities served as underwriter for the digital bond. On both bonds, Nomura Trust and Banking Co., Ltd. acted as fiscal agent, while BOOSTRY provided its blockchain platform “ibet” and acted as register agent. Payment and issuance of the bonds were completed on March 30, 2020.

The bond register for both bonds is managed via the ibet platform. This enables issuers to keep track of bondholders, which is difficult with traditional bonds. The digital asset bond provides digital assets to investors instead of interest payments. NRI solicited investors for the digital asset bond using a smartphone app that connects to ibet.

Through the issuance, Nomura Group and NRI seek to contribute to the development of Japan’s capital markets in order to create value and help resolve social issues. In addition to providing funding through the capital markets, the digital asset bond represents a new form of collaboration between marketing and finance, which helps in expanding the functions of the capital markets. The digital bond aims to contribute to more agile fundraising through new financial services, including digital currencies.

Nomura Group has established a dedicated research group as part of its ongoing efforts to respond to the diversification of financial transactions due to advances in information communication technologies. The new research group brings together academics, issuers, asset managers, settlement agencies, financial intermediaries and other experts in the field to focus on blockchain technology in the financial and capital markets. The group will take a multifaceted approach to identify relevant issues and determine how blockchain technology can be used to help enhance and diversify financial and capital markets and respond to the funding and investment needs of issuers and investors.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<