Yoshitaka Kitao, the President and CEO of the SBI Holdings Co. Ltd. Reveal to launch its first business in Japan based on the Security Token Offering (STO) as a group industry.
STO is a theme where the issuers can raise funds by using the “security tokens”. These security tokens are furnish by the electronic means including blockchain in place of any conventional stocks or any other corporate bonds.
After the amendment of the Financial Instruments and Exchange Act of 2019/5/31 including the revised version of the government, the ordinance states that “the right to display electronic records, transfer of securities, etc.” Moreover, as per the amendment of the said act in 2020/5/1, the company shall commence its first business in Japan in the following manner.
- Firstly the company shall finish the application procedure by SBI Securities Co. Ltd and by other required government agencies.
- Then comes the third-party allotment by using the STO by SBI e-Sports (2020-10): The e-Sports shall implement the third-party allotment capital increase by using the STO along with SBI as the underwriter. The blockchain platform offer by BOOST Co. Ltd., but shall be used to issue the digital share on this capital increase. In addition, several features shall be provided such as the transfer of tokens, transfer of rights, and the renewal of stock.
Overview of STO by SBI e-Sports:
- Issuer: SBI e-Sports Co. Ltd.
- Types and number of shares provided: 1000 shares of common stock.
- Underwriter: SBI Holdings Co. Ltd.
- Amount Paid for the shares offered: 50,000 Yen per share.
- Payment Date: 2020 10.30
- Increasing capital (capital reserves included): 50,000,000 Yen
- Stock management scheme issuance and the management of digital shares on the best platform
- Offer the digital corporate bonds issued by the operating companies.
To handle the other STOs (fund type): Public Offering
SBI securities generally consider the operation related to the management of public offering of STO. This can be in the form of funds that are based on the Trusts Act and Liquidation Act of assets etc. the best destination to make an investment for such fund type is on real estate works, intellectual property right works including copyright, patents, etc.
Interestingly by taking part in the STO the investor can become the proud owner of any particular assets just from a small amount and can also finance their assets. In addition, the invested may get other benefits associated with the project.
Let’s hope that this project enhances the business opportunities in Japan may be beyond Finance.
