Popular Trust bank goes digital
One of the giant financial institutions in Japan has stated that it would be partnering up with crypto exchange service Bitbank. It stated that it plans to open up a new company that is crypto-aligned.
One of Japan’s major banks has decided to venture into the digital market ecosystem. It is looking into opening a crypto custody service. It will be partnering with Bitbank to launch its new services.
The new company named Japan Digital Market Trust will be jointly owned by both companies, Bitbank would own 85% of the company while Sumimoto would own 15% of the custodian services. Both parties will place their attention on safeguarding crypto and NFTs of national and international clients.
The idea behind the company is to create a company that would secure the digital assets of investors. This is because most investors are worried about the safety of their assets. So the company believes that there would be more investors if there is a way to properly secure their assets.
They believe that by having a trustworthy and already established business in the crypto industry, they would be able to draw in more investors. They saw the scrutiny that crypto exchanges receive from the government.
The company with the help of other investors aims to get 10 billion yen. Its current capital is valued at 300 million yen.
New Launch and Company’s Opposition
The company is to begin operations very soon. It already has competitors planning on hopping on this same idea. Behind its heels is Nomura which has teamed up with crypto Garage to open a company very similar to the public.
The Japan Digital Market Trust also plans to release a stable coin that is pegged to the country’s yen. So far no other company has such plans. It plans to carry this out with laws set by the government that allows such products to be done.
With the recent issues that plague the digital market industry, this development shows the level of faith that the companies have in the industry. The company is delving into the market during a time when crypto coins are showing just how volatile they can be.
From Bitcoin losing almost half its previous value to other coins like Luna almost dropping to zero. We have also seen the metaverse keep evolving. The company is to see a flow of demands for a stablecoin that is separate from the instability that other coins share.