Four firms begin live testing of Japan-domiciled tokenized investment trust

  • Four firms began live testing of a Japan-domiciled tokenized investment trust.
  • The fund holds ¥200 million in seed capital and invests in bonds maturing within three months.
  • Beneficiary rights remain certificate-based while the ownership registry is managed on a blockchain.

Mitsubishi UFJ Asset Management, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and Progmat have begun testing a Japan-domiciled tokenized investment trust in a live production environment. Established on Aug. 31 for demonstration purposes, the yen-denominated fund invests in Japanese government bonds with remaining maturities of three months or less, allows daily purchases and redemptions, and has ¥200 million (about $1.3 million) in seed capital from the four firms. The initiative is described as Japan's first real-world verification of tokenization for a domestically domiciled investment trust. The test covers asset management, trust administration, beneficiary-rights management and system operations. The fund's beneficiary rights remain represented in certificate form, while its beneficiary registry is managed on a blockchain. It will not be offered or sold to external institutional or retail investors. The project also examines how tokenized investment trusts could connect with stablecoins and tokenized deposits for settlement, investment of surplus digital funds and collateral use, although Japanese legal rules still prevent blockchain transfers alone from completing the legal transfer of beneficiary rights.

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