Tokai Tokyo Financial Holdings will partner with Singapore security token platform ADDX to enable security tokens across Asia, including Japan, Thailand and South Korea. ADDX is authorized by the Monetary Authority of Singapore and its holding company ICH X TECH is backed by the Singapore Exchange SGX.
The Nikkei reported that the two companies plan to set up ADDX Japan in 2023. As an initial step, Japanese real estate will be tokenized and packaged to sell to Singapore and Japanese investors in units of less than $10,000.
In late 2019, Tokai Tokyo invested $5 million in ADDX (formerly iStox). In the middle of last year, both companies invested in blockchain startup Hash Dash Holdings to launch a mobile-first security token app.
Around the same time, Tokai Tokyo partnered with real estate development firm Tosei to offer digital securities backed by the rental income of Tosei’s office buildings. The aim was to list the tokens on ADDX in Singapore. It’s unclear whether that happened or the current plans are simply a delayed version of this.
Tokai Tokyo is not ADDX’s only Japanese backer. Earlier this year, it attracted investment from the Japanese Investment Corporation (JIC-VGI) and the Development Bank of Japan (DBJ).
It’s notable that the plans mention Korea and Thailand. Two other major investors in ADDX are Korea’s Hanwha Asset Management and Thailand’s Kiatnaking Phatra Financial Group.
Meanwhile, ADDX has been busy. Last month it partnered with major Singapore bank UOB to tokenize a portion of a sustainability bond where UOB was lead manager.