Nomura, Daiwa Join Major Banks for Yen Stablecoin Securities Pilot

Nomura and Daiwa, alongside major Japanese banks, aim to enable stablecoin-based purchases of stocks, bonds, and funds, targeting MMFs and digital securities rollout within several years.

Summary

Nomura Holdings and Daiwa Securities Group have expanded their collaboration with Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Banks to develop a framework allowing purchases of stocks, bonds, and investment funds via a yen-denominated stablecoin. The initiative specifically targets money market funds (MMFs) and digital securities, aiming for operational implementation within several years. This effort builds on earlier pilots of blockchain-based real-time settlement, marking a broader push by Japan’s leading financial institutions to integrate stablecoin technology into mainstream capital markets.

Terms & Concepts
  • Stablecoin: A cryptocurrency pegged to a stable asset, such as fiat currency, to minimize price volatility.
  • Digital Securities: Tokenized versions of traditional financial instruments issued and traded using blockchain technology.
  • MMF (Money Market Fund): A type of mutual fund that invests in short-term, low-risk securities, offering high liquidity and stability.