According to a report from Nikkei Asia, Japanese bank Sumitomo Mitsui Trust will launch a new company to provide digital asset custody services to institutional investors.
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- Called Japan Digital Asset Trust, the company will target institutional investors concerned by the risk of cryptocurrency theft.
- The decision to create the unit follows Japanese rival Nomura's announcement earlier this month that it would establish a subsidiary to provide institutional clients with access to cryptocurrencies. The decision also represents a global shift toward the asset class, with banks such as BNP Paribas having begun using JP Morgan's blockchain-based network Onyx to trade fixed income securities.
- The custody service will be a joint venture between Bitbank, Japan's largest cryptocurrency exchange, which will hold an 85% stake, and Sumitomo Mitsui Trust, which will hold a 15% stake.
- Japan Digital Asset Trust will have an initial capital of $2.3 million and hopes to grow to $78 million through additional investments.