ADDX, a private market exchange, has announced a partnership with financial services company Tokai Tokyo which recently obtained a securities token license from the regulators in Japan.
With this license, Tokai Tokyo would be able to tokenize non-liquid assets like real estate and real estate companies and would then be able to make these tokens available for trading for traders and investors in a secondary exchange. The company already runs a securities brokerage in Japan with several billion dollars worth of assets under management. Its partnership with ADDX would help it to tokenize the assets and the fact that this is the first time that the Japanese regulator has given license to tokenize non-liquid assets should be a huge boost to the company in the long run. This partnership would enable the tokens to be available for trading on both platforms with ADDX also holding a license with the Monetary Authority of Singapore for issuance and trading of digital securities.
Oi Yee Choo, Chief Commercial Officer of ADDX, said: “Tokai Tokyo is one of the oldest and most trusted financial companies in Japan, with roots dating back to 1908. We expect this partnership to yield multiple deals over the next few quarters. The possibilities are exciting and limitless, given how the two companies share the same vision on innovation in the financial services and bring complementary strengths to the table.”
Digital securities are backed by real-world assets and with them being regulated as well, it makes them available to many accredited investors at very low cost which can then manage to invest into assets that were previously out of reach for them. The issuers of such securities benefit from low fees and also gain access to newer investors and can also offer these products at a lower entry price which brings in even more funds and investors into this space in the long run. With this partnership, ADDX expects to grow its userbase in Japan manifold. This was a partnership that has been in the works since 2019 when Tokai Tokyo invested in ADDX when it began to look for a securities token license, Now that it has managed to gain it, the company has promptly gone ahead to launch this partnership which is likely to lead to further deals in the future creating a win-win situation for both the companies.
