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SmartPlus Introduces Security Token Trading Through MUFG

The Beginning of a New Era in Digital Securities

SmartPlus, headquartered in Tokyo, Japan, has recently announced a significant partnership with Mitsubishi UFJ Morgan Stanley Securities, marking a notable step forward in the realm of security tokens. This collaboration aims to integrate a security token trading feature into their Brokerage as a Service (BaaS) platform, which is scheduled to launch on October 9, 2025, through a newly developed digital securities trading service known as ASTOMO.

Market Context and Growth

In recent years, the security token (ST) market has seen explosive growth, with the cumulative issuance amount exceeding 160 billion yen for domestic public offerings in FY 2024. The launch of Japan’s first secondary market for STs, operated by Osaka Digital Exchange (ODX), has further catalyzed this expansion, eagerly awaited for its role in increasing liquidity and investor engagement in security tokens.

Currently, real estate STs dominate the market—a trend anticipated to diversify as various asset classes, including corporate bonds and other types of securities, attract attention from both issuers and investors. This diversification offers new avenues for fundraising and investment, epitomizing the evolving nature of the financial landscape.

MUFG's Move into Digital Assets

Recognizing the potential for growth in the ST market, Mitsubishi UFJ Morgan Stanley Securities has made the strategic decision to venture into digital assets. By adopting SmartPlus's BaaS platform as its foundational system, the firm aims to harness the integration of digital assets to provide enhanced financial services to its extensive client base.

The ASTOMO platform represents a collaborative effort between SmartPlus and MUFG, tailored specifically for individual investors interested in digital securities. By marrying MUFG’s powerful procurement capabilities with SmartPlus's technological know-how, ASTOMO will initially offer real estate STs, ushering in a new era of investment opportunities. It promotes considerable accessibility, allowing investments starting from as low as 100,000 yen through mobile devices.

For further information, you can visit the ASTOMO service site at ASTOMO.

Enhancing BaaS Functionality for ST Trading

In anticipation of the ASTOMO launch, the BaaS solution has been enhanced to accommodate a wider array of ST trading functionalities, including security token offerings (STOs) and over-the-counter trading capabilities that connect to ODX’s secondary market, START. This dual-market support allows for a seamless transition from initial issuance to secondary trading.

SmartPlus now supports the entire lifecycle of security tokens, from the primary market to secondary trading, facilitated by the necessary system connections with trust banks and blockchain infrastructures for comprehensive digital securities trading.

Future Developments

Looking ahead, SmartPlus is committed to expanding the ST market beyond real estate by incorporating diverse asset classes, especially targeting bond-type STs in the short term, aligned with upcoming regulatory frameworks. Additionally, the BaaS solution will be offered to both financial institutions and non-financial enterprises aiming to broaden their investment portfolios without the significant upfront costs that typically hinder entry into the ST market.

By lowering barriers to entry, SmartPlus's BaaS facilitates increased participation in the ST market, ultimately expanding the investor base and invigorating market activity. This aligns with Japan's Financial Services Agency's objective to promote a robust asset management landscape that offers diverse investment avenues while enhancing transparency and convenience across digital securities ecosystems.

Understanding BaaS

The BaaS (Brokerage as a Service) platform provides a comprehensive suite of API-based operational systems essential for delivering securities services. By managing external collaborations entirely in the cloud, the BaaS allows for the development of customized services that are adaptable to changes in legal regulations and market conditions. Through the implementation of BaaS, firms can deploy high value-added services quickly and at lower costs, while ensuring compliance and market responsiveness.

In conclusion, this partnership between SmartPlus and Mitsubishi UFJ Morgan Stanley Securities not only signifies a pivotal moment in the advancement of digital securities but also sets the stage for a new wave of financial services that are more accessible and aligned with the needs of today’s investors.