Capital markets News

JPX invests in Nomura’s BOOSTRY blockchain venture

jpx tokyo stock exchange

The operator of the Tokyo Stock Exchange, JPX is taking a 5% stake in BOOSTRY, a blockchain infrastructure company founded by Nomura and Nomura Research Institute (NRI), in which SBI has a minority interest. A year ago, JPX revealed it was exploring blockchain green bonds using BOOSTRY’s ‘ibet for Fin’ security token issuance platform.

Following the transaction, Nomura’s stake drops from 56% to 51%, but NRI’s (34%) and SBI’s (10%) holdings are unchanged.

BOOSTRY was founded in 2019 and currently has a consortium of 15 members using the platform for tokenized securitized products and corporate bonds. 

After JPX announced plans for a green bond in February last year, JPX Market Innovation and Research (JPXI) issued its first digitally tracked green bond in April 2022 using the BOOSTRY ibet for Fin platform. The tracking relates to the electricity generated from the power plants in which the bond proceeds were invested. Hitachi implemented a tracking system that converts the renewable energy generated into CO2 emissions reductions. The first bond invested in a new biomass power plant and two new solar farms.

Now JPX and JPXI plan to develop other services in conjunction with the ibet for Fin consortium. But there’s some competition.

The other major security token issuance platform in Japan is Progmat, founded by MUFG and in which JPX and SBI are venture partners.

ibet for Fin uses the Ethereum-based Quorum enterprise blockchain, whereas Progmat is based on R3’s Corda enterprise blockchain.

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