Japanese Local Bank Partners on Tokenized Securities Pilot

Japanese local bank San-in Godo Bank has formed a strategic partnership with tech giant NTT Data and tokenization infrastructure provider Securitize Japan to explore the feasibility of using tokenized securities for regional economic fundraising.

The collaboration aims to assess whether San-in Godo Bank can act as the issuer, self-issuing bond-type security tokens based on blockchain as the underlying carrier, and directly selling them compliantly to local and regional investors.

This model is expected to reduce channel costs of intermediary underwriting and lower fixed friction costs of bond issuance.

The study is backed by a clear demand for regional economic revitalization, with local banks in Japan generally bearing the responsibility of supporting small and medium-sized enterprises and public utilities within their jurisdictions.