Capital markets News

Daiwa Securities partners with MUFG’s Progmat for tokenized bonds

tokenized bonds Daiwa Securities Progmat SBI R3

Daiwa SecuritiesSBI R3 and Progmat are partnering to create an end-to-end experience for tokenized bond issuance. Daiwa has developed a bond marketing pre-issuance solution using R3’s Corda enterprise blockchain. And it will integrate with Progmat, the tokenization platform founded by MUFG with backing from SMBC, Mizuho, JPX, SBI and others.

Daiwa’s bond solution and Progmat use Corda, hence the involvement of SBI R3. Both Daiwa and Progmat believe the bond marketing solution is not an investment banking value added service and hence hope that other securities firms such as Nomura or SMBC Nikko Securities might adopt the offering, the Nikkei reported.

Daiwa’s Bianca solution aims to automate a very manual process. In pre marketing, the investment bank contacts investors via phone, email or chat to confirm interest in the bond issuance. The result is usually compiled using a spreadsheet. Future planned features include finalizing investor allocations.

Progmat already has a bond collaboration with NTT Data, which owns Japan Information Processing, the dominant conventional bond issuance and payment agent solution. NTT Data is one of Progmat’s investors.

Meanwhile, last week Daiwa Securities announced plans to trial bond issuance on public blockchains. At the time, we noted that Daiwa didn’t have a collaboration with either of the main institutional tokenization platforms – Progmat and Nomura-founded BOOSTRY. Now it does.