Mitsubishi UFJ Trust Bank and Web3 firm Ginco have partnered to offer Japan’s first crypto asset trust service to legitimize the token market and attract institutional investors.
Japan is witnessing a major milestone in the crypto space, as the country’s largest bank, Mitsubishi UFJ Trust Bank, and Web3 development firm Ginco have announced their partnership to introduce the nation’s first “crypto asset trust” service.
The move aims to revolutionize the management of cryptographic assets while complying with evolving regulations.
Overview of the crypto asset trust service
The “crypto asset trust” initiative, initiated on March 31 by Mitsubishi UFJ Trust and Banking Corporation and Ginco Co., embarks on a journey to establish a secure and attractive environment for issuing and trading tokens.
The collaboration aspires to facilitate proper taxation for token issuers and enable institutional investors to partake in the token market confidently.
Under this strategic alliance, Ginco will oversee tokens issued on Mitsubishi UFJ’s public blockchain. This novel service, slated for launch within the year, marks a significant stride toward legitimizing the crypto landscape in Japan.
While regulatory challenges surfaced after a 2018 data leak incident, the tide is turning with the legal framework adjustments that took effect in October 2022, enabling trust banks like Mitsubishi UFJ to offer custody services for crypto assets.
This groundbreaking endeavor will encompass responsibilities related to trust tokens, including private key management.
By providing a reliable and compliant solution for token issuers and investors, Mitsubishi UFJ and Ginco hope to foster innovation and growth in the crypto industry.
The competitive edge of this service over other crypto custody solutions
Japan is not the only country that has seen the emergence of crypto custody solutions. In fact, several global players have already entered this space, such as Coinbase Custody, BitGo Trust, Gemini Custody, and Fidelity Digital Assets.
These services offer various features and benefits for their clients, such as insurance coverage, multi-signature security, regulatory compliance, and institutional-grade storage.
However, the crypto asset trust service by Mitsubishi UFJ and Ginco is unique in that it is the first of its kind in Japan, a country that has been at the forefront of crypto regulation and adoption.
Moreover, it leverages the expertise and reputation of both partners, with extensive experience in the banking and Web3 sectors. They aim to create a competitive edge in the Japanese market and beyond by combining their strengths.
