Aug 24, 2022
Securitize Japan, the leading tokenization platform in Japan, announced that MARUI Group Co., Ltd., one of the largest retailers in Japan, selected Securitize to launch the first tokenized, publicly-available, self-offered corporate bond in Japan. Securitize Japan is a subsidiary of Securitize, Inc., the U.S.-based leader in tokenization, whose all-in-one solution enables companies to easily onboard and manage shareholders, tokenize assets, raise capital and seek liquidity, all powered by blockchain technology.
Interest in the offering was significant, with investor demand 20 times greater than the initially-planned issuance amount of approximately 100 million yen ($722K USD).
The offering was made available to members of MARUI’s EPOS merchant-branded credit card. Investors benefit in two ways: first, they can expect to receive a 1% pre-tax annual return and, second, participate in a new social responsibility effort by contributing to micro-financing activities in developing countries performed by MARUI partners.
Investors will receive returns in the form of both cash and popular EPOS points, a tokenization-enabled structure which benefits both parties.
The deal was closed and tokenization occurred on June 20, 2022. MARUI was advised by Nomura Securities Co., Ltd.
Security Token Offerings provide a number of advantages over traditional methods of issuing bonds, such as:
Awareness of all investors and the ability to communicate directly with them, whether for the purpose of investor relations, customer service or marketing.
The ability to offer investors non-cash returns, such as MARUI’s offering investors a combination of cash and EPOS points. This can create more attractive and valuable investment structures.
Fractional ownership of bonds enables more investors to participate.
In addition, security tokens can also be traded more easily in a secondary market (although that capability is restricted in this particular offering).
“Securitize is proud to have worked with MARUI Group and its advisor Nomura on this historic offering, which we expect will become a role model for how Japanese businesses can raise capital in the future, including from their own customers and fans,” said Eiji Kobayashi, Securitize’s Head of Country for Japan. “We are also pleased that this issue delivered benefits to all stakeholders, including issuer and investors. Securitize is grateful that our platform helped MARUI Group accomplish its important corporate mission.”
About Securitize Japan and Securitize, Inc.
Securitize Japan is the leading tokenization platform in Japan (and is not a securities firm under Japanese law). Securitize Japan is an entity of Securitize, the leading digital asset securities firm in the world, which has a mission to provide shareholders access to invest in and trade alternative investments, and for companies to raise capital, manage shareholders, and offer shareholders potential liquidity. Securitize has pioneered a fully digital, all-in-one platform for issuing, managing and trading digital asset securities, consistent with the existing U.S. regulatory framework, with a community of over 1.2 million investors and 3,000 businesses connected. Securitize is comprised of Securitize, Inc. and its subsidiaries Securitize LLC and Pacific Stock Transfer (both SEC-registered transfer agents), Securitize Capital, LLC, Securitize Markets, LLC (an SEC-registered broker-dealer, member of FINRA and SIPC, and operator of the company’s alternative trading system). Learn more at http://www.securitize.io.
Media Contact
Securitize: Evan Wagner, evan.wagner@securitize.io
Disclosures
Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every shareholder. Private investments are generally an illiquid asset class; shareholders cannot sell their funds when they want to without potentially facing high losses. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.
Digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal. Blockchain investing involves a degree of risk that can be different from traditional markets. These risks include, but are not limited to, risk of regulatory uncertainty, market adoption, market manipulation, market exiting, price volatility and security risk.
