Toyota to Issue First Blockchain-Powered Security Token Bonds

The Toyota Group’s financial arm will issue its first blockchain technology-powered security token bonds next month.

Per a report from the Japanese-language media outlet CoinPost and an official Toyota Financial Services press release, the financial heavyweights Daiwa Securities and Mitsubishi UFJ Bank are also collaborating on the offering.

Toyota Security Token: What We Know

The firms will launch the token on the Mitsubishi UFJ-affiliated Progmat platform. The bank previously said that Progmat would work on interoperability solutions for stablecoins on different blockchain protocols.

The firms say that token-holders can enjoy a range of special benefits if they also have Toyota Wallet accounts. Toyota Wallet is the Toyota Group’s smartphone-based digital pay app.

The firm has called the token the Toyota Wallet ST (securities token) bond. Toyota Finance explained that the offering is a 1 billion yen ($6.6 million) “unsecured security token bond.”

The offering is slated to mature one year after its issuance date (March 3, 2025). The firm said it would begin sales on February 20, wrapping up on February 27.

Toyota said it wants to “use blockchain technology” to “strengthen the link between the Toyota Group and individual investors.”

The companies added that they would use Progmat’s software-as-a-service (SaaS) “digital asset issuance and management platform” offering to release the token.

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Toyota Financial Services added that the company would offer token holders “bonus” credit in their Toyota Wallets.

The company said it would provide investors spending over 1 million yen ($6,567) on the tokens with over $65.67 worth of Toyota Wallet credit.

Daiwa Securities is the offering’s underwriter, with Mitsubishi UFJ’s banking arm acting as the bond administrator.

Meanwhile, the Mitsubishi UFJ Trust and Banking Corporation will perform bond registry administration duties.

Japanese Megacompanies Looking to Expand Security Tokens Operations

Many big Japanese businesses are stepping up their security tokens-related operations as the government continues to target blockchain-related growth.

Last year, Mitsubishi UFJ also announced its intention to work with the e-commerce and entertainment giant Rakuten and Mizuho Bank on a new security tokens offering.

This project also involved the aforementioned Daiwa, Japan’s second-largest securities firm.