Japanese Bank Sumitomo Mitsui Trust Launches Crypto Custody Service

  • Japanese bank Sumitomo Mitsui Trust provides digital asset custody services for institutional investors.
  • The venture is carried out with Bitbank, which will own 85% of the venture.
  • Institutional investors are interested in cryptocurrencies, but want protection and good infrastructure.

Japanese bank Sumitomo Mitsui Trust has announced that it will provide digital asset custody services for institutional investors to enable stakeholders to safely enter the market. Nikkei Asia told the newsThe newly formed custodian said that it would only offer investments in cryptocurrencies and non-fungible tokens to large investors and companies.

The custodian, called Japan Digital Asset Trust, is a joint venture between the Sumitomo Mitsui Trust and the Bitbank cryptocurrency exchange. The latter owns 85% of the venture and Sumitomo Mitsui Trust owns 15%. The idea is to build a robust and secure infrastructure for interested participants who have shunned their investments for fear of hacking and scams.

Sumitomo Mitsui Trust is a well-known financial firm with total assets under management of $666 billion. By entering the crypto space, it joins banks in many other countries providing crypto services to institutions.

Also, the bank is not the only bank in Japan to launch a cryptocurrency custody service. Financial holding company Nomura is also working with Crypto Garage exchanges. However, the Sumitomo Mitsui Trust can also issue yen-denominated stablecoins.

Institutions are still passionate about cryptocurrencies.

In the past few years, institutional investors have poured into the cryptocurrency market, and major assets have received a lot of investment. But above all else, concerns about volatility are holding back some of these companies. The recent market crash will no longer convince them.

But overall, more institutional investors continue to flow in, as evidenced by the Sumitomo Mitsui Trust announcement. This could give the market a lot of support going forward. If the Japanese authorities work on cryptocurrency-friendly regulation, the results will be much better for Japanese investors.

Fidelity Investments is a good example of a successful wealth management company that includes more cryptocurrencies. The company plans to offer Bitcoin in its 401k plan, which has received rave reviews from some lawmakers and frowned upon among others. The SEC also said that companies providing custody services should add cryptocurrencies as debt.

Leave a Comment