In November we reported that Daiwa Securities, Japan’s largest security token underwriter, planned to trial digital securities on public blockchains. The digital bond was issued (and redeemed) in February and was the first in Japan to record transfer rights on a public blockchain. However, the experiments aimed to prevent the theft of security tokens when a hacker steals private keys.
The trials involved Fintertech, Daiwa’s fintech subsidiary and web3 firm Ginco. Private blockchains allow for greater control, so if there’s a theft, the tokens can easily be taken away from a thief. Using public blockchains that’s not so easy to do.
Many institutions are keen to use public blockchains but don’t because of the risks or because regulators are not keen. By showing that the risks can be contained, this addresses both concerns.
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