Tokai Tokyo receives securities token license as it partners with ADDX

Karthik Subramanian

Tokai Tokyo Financial Holdings, a financial services company, has announced a partnership with private market exchange ADDX to offer fractional private market investment products to investors in Japan, after Tokai Tokyo secured a securities token license from the Japanese regulator.

Tokai Tokyo is the holding company for a securities brokerage in Japan and offers investment and trading services to investors and traders all over Japan and has over $38 billion in assets under management. The company had received a securities token license from the regulator, a much sought after license but which is given out very rarely and using this license, both Tokai Tokyo and ADDX are looking to issue such tokens for real estate companies in Japan as well as banks. These deals will be tokenised on the ADDX platform before it is offered to various investors and clients of Tokai Tokyo who can choose to invest in these tokens.

Yuji Ban, Senior Managing Executive Officer, Tokai Tokyo Financial Holdings, said: “It took a long time to get to this point, but we now have a license for security tokens. Our future collaboration with ADDX will be key to establishing an innovative business model in Japan, where a digital security exchange like ADDX does not exist yet. We and many others in Japan eagerly anticipate working with ADDX to create investment opportunities for Japanese investors and new financing options for issuers. We look forward to working with ADDX on a variety of security token projects in the near future.”

ADDX expects that this partnership would be very fruitful and would be useful for it to expand its userbase as this is the first time that the regulator has allowed a company to tokenise non-liquid assets like real estates. All the approvals given so far were for liquid assets and this is likely to give the partnership a headstart as it would be the first company in Japan to push these tokens onto a secondary exchange. ADDX also has licenses from the Monetary Authority of Singapore for issuing and custody of digital securities and has already built a strong userbase among the investor community in Singapore and parts of Europe and the Americas as well. Tokai Tokyo had invested into ADDX in 2019 itself when it had begun its plans to obtain a securities token license.

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