Securitize Japan Joins Self-Regulatory Association, JSTOA, To Scale Market Opportunities
The Japan subsidiary of SEC approved digital token offering firm, Securitize, has joined the country's Security Token Offering Association (JSTOA). Securitize Japan debuts as the first international token issuer in the self-regulatory association as it seeks to expand its footprint in one of the most crypto advanced jurisdictions. This move comes months after the firm launched its Japan subsidiary hence gaining access to the JSTOA membership given only Japan regulated firms are accommodated within its ranks.
Japan Security Token Offering Association (JSTOA)
This initiative was started back in 2019 under the collaboration of six leading brokerage firms in Japan. It is recognized by the state and operates with an aim of consolidating expertise to scale the opportunities for digital token and crypto exchange businesses. Notably, SBI holdings which is among the founding members of the JSTOA owns shares in Securitize following a 7-figure investment into the firm towards the end of last year.
According to Securitize CEO and Co-founder, Carlos Domingo, they had already seen value in the JSTOA and were willing to join earlier if not for jurisdiction hurdles,
“So we had already talked to them, and some of the members about how as soon as the association was open to non-regulated members, we [wanted] to be the first company but we are not.”
He went on to note that one of the main reasons Securitize is looking to expand in Japan is the forward-thinking attitude towards blockchain and crypto technologies. This has been sustained by a comprehensive approach towards crypto regulation which is in turn boosting investor confidence. Domingo emphasized that such factors and a first-mover advantage motivated Securitize to consider Japan,
“So, if you put all those things together, we definitely saw that this was an opportunity and moreover, none of our competitors had any presence in Japan.”
While there are underlying opportunities, Domingo was keen to acknowledge that Japan's business environment can be a bit intimidating but remained optimistic on the move. Interestingly, the Securitize CEO has quite an understanding of the Japanese language and culture having lived there for a couple years.
Securitize Japan has since been welcomed to the JSTOA by its Chairman who is also the CEO of SBI Holdings, Yoshitaka Kitao.
“We are very proud to have them join the JSTOA, and look forward to working alongside them.”