Major Japanese Bank Sumitomo Mitsui Trust to Launch Cryptocurrency Custody Business
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One of Japan’s biggest banks, Sumitomo Mitsui Trust, is expected to enter the cryptocurrency custody business. Bitbank, a Tokyo cryptocurrency exchange, will partner with the company to launch a new company that aims to offer institutional-grade custody for digital assets and NFTs.
Sumitomo Mitsui Trust Bank, a major financial institution in Japan, has decided to enter the cryptocurrency storage business. A team of digital assets custody companies is being formed with Bitbank, a Tokyo-based cryptocurrency exchange. Located in Tokyo, the company will provide institutional customers with access to crypto and NFTs.
Local media reports that the move is aimed at reaching the institutional market that still views custody as a barrier to investing in these new products. Rather than crypto exchanges, which often do not face the same scrutiny as established regulatory bodies, investors will be more comfortable holding digital assets when they are held by financial institutions recognized within the financial world instead of crypto exchange institutions.
As other competitors are also eager to bring these services to the Japanese market, the new company intends to launch operations this year. They’re also working together to offer similar services to their customers.
There will also be a different product offered by the Japanese Digital Asset Trust. According to reports, the new company plans to introduce a yen-pegged stablecoin, supported by regulations allowing banks to launch this kind of coin.