Receive interest with Rakuten Cash – Japan's first corporate bond security token with full electronic money interest payments | CoinDesk JAPAN

Introducing a corporate bond security token (ST) whose interest is paid through Rakuten Cash.

Daiwa Securities Group Inc., Daiwa Securities, Rakuten Securities, Rakuten Payment, Mizuho Bank, Mitsubishi UFJ Trust and Banking, and Progmat announced on February 21st that they are collaborating to issue a corporate bond ST that pays interest in the electronic money “Rakuten Cash.” Then he announced. This is the first security token in Japan where interest is paid in electronic money.

The name of the issue is “Daiwa Securities Group Inc. 1st Unsecured Security Token Bonds (with inter-bond pari passu clause and transfer restrictions), nicknamed “Daiwa Securities Group Inc. Security Token Bonds''.

Total amount issued: 1 billion yen, amount per unit: 100,000 yen, term: 1 year. Daiwa Securities and Rakuten Securities will underwrite (broker) and sell to individual investors. Use Promat as the base.

(From the release)

There are two points worth noting about this corporate bond ST.

The first is Rakuten Securities' entry into the security token market. This is the second major online securities company to enter the market, following SBI Securities. Tatsuya Saito, Founder and CEO of Progma, said, “From the perspective of expanding the investor base, it is extremely important to expand/diversify into channels other than face-to-face securities.''

Second, interest is paid electronically. This time we will use Rakuten Cash, but you can also use other electronic money. In addition to promoting the use of e-money, by using specific e-money for a specific “◯◯ economic zone,” it is possible to surround ST investors with the economic zone and encourage them to become fans.

Furthermore, if it is determined that ST can increase ST investors' engagement with the economic zone, it will be possible to issue bonds on more favorable terms than traditional corporate bonds.

Corporate bond ST has the advantage of being able to grasp investor information in real time, which traditional corporate bonds do not have, but by combining it with electronic money, the possibilities will expand even further.

｜Text: CoinDesk JAPAN Editorial Department
｜Image: Shutterstock