Nomura, NRI agree on JV to use blockchain tech to develop platform for exchanging securities

Maria Nikolova

Nomura is set to own 66% of the new joint venture, whereas NRI is poised to have a 34% stake.

Nomura Holdings Inc (TYO:8604) and Nomura Research Institute Ltd (TYO:4307) have announced the signing of a memorandum of understanding regarding the establishment of a joint venture company. The joint venture will make use of blockchain technology to develop a platform for exchanging securities and other rights.

Regarding the rationale for the establishment of the JV, the companies explain that, over the past several years, various industries have been exploring the use of blockchain technology to offer services. In the financial services sector, the focus has been on how this technology can be used in areas such as settlement services and securities transactions.

Although blockchain technology is still in the development stages, progress has been made in Japan and overseas in applying this technology to social matters including existing legal systems, as well as in implementing initiatives to deliver tangible new value to blockchain users.

Nomura and NRI have been working together on the development of services harnessing the latest technologies. In 2015, the two companies tested the use of blockchain technology in managing equities related information, and technical experts from NRI are dispatched to Nomura’s innovation subsidiary N-Village to conduct joint research into various technologies as well as create new businesses and services.

In order to respond to the need for more sophisticated and agile services in the securities trading business, the two companies aim to build a new platform to support corporate clients with the issuance and distribution of securities and other rights.

Nomura will have a 66% stake in the joint venture whereas NRI will hold 34% (This is subject to further discussion between the two companies.)

Speaking of Nomura’s projects in the area of digital assets and related technologies, let’s note that, in January this year, LINE Corporation, LINE’s group company LVC Corporation, and Nomura Holdings Inc, said they entered into a memorandum of understanding (MOU) to begin discussions on forming a financial business alliance focused on blockchain technology. Specifically, the parties will consider forming a capital alliance in which LVC will increase capital by way of third-party allotment of new shares to Nomura.

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