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According to a report by Nikkei Asia, Japanese bank Sumitomo Mitsui Trust will create a new company that will offer services for the storage of digital assets to institutional investors.
The company, dubbed the Japan Digital Asset Trust, will target institutional investors concerned about the risk of cryptocurrency theft.
The decision to create the unit came after Japanese rival Nomura announced earlier this month that it was launching a subsidiary that would give institutional clients access to cryptocurrencies. It also represents a global shift toward the asset class, with banks like BNP Paribas starting to use JP Morgan Onyx’s blockchain-based network to trade fixed income.
The depository service will be a joint venture of Bitbank, the largest cryptocurrency exchange in Japan, which will own 85% and Sumitomo Mitsui Trust, which will own 15%.
Japan Digital Asset Trust’s initial capital will be $2.3 million and the company hopes to increase it to $78 million through additional investments.
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