• February 27, 2024

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Sumitomo Mitsui Trust Intends to Launch Crypto Custody Service

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Sumitomo Mitsui Trust, a Japanese bank with $664 billion in assets, has plans to create a subsidiary that will offer cryptocurrency custody services to institutional investors, Nikkei Asia reports.

The subsidiary, dubbed Japan Digital Asset Trust, will be a joint venture with an 85% stake in the cryptocurrency exchange Bitbank and a 15% stake in the bank.

Sumitomo Mitsui Trust believes large investors and corporations will feel more comfortable investing and owning digital assets if they can be trusted with a traditional financial institution with an established reputation like the bank.

The joint venture will also focus on the issuance of a yen-pegged stablecoin as the bank predicts an increase in demand for such assets in the future.

Japan Digital Asset Trust will have an initial capital of 300 million yen ($2.3 million).