Sony Bank offers USD-denominated Green Finance Security Token

Sony Bank, Sumitomo Mitsui Trust Bank (SMTB), and Securitize Japan launched their partnership with a public offering and issuance of security tokens of a joint money trust backed by loan receivables in July 2023, which was the first time in Japan that (I) a joint money trust was tokenized and (II) security tokens were sold by a bank.

Last week, we reported that Sony Bank announced the release of “Sony Bank CONNECT” in summer 2024, enabling users to enjoy digital content such as NFTs previously distributed by Sony Bank through campaigns, and digital content to be presented to customers who purchase Sony Bank’s digital security “US Dollar-Denominated Green Finance Security Token (№1 of 2024)”. However, we did not explain the mechanics of said Green Finance Security Token. This blog post will fix that omission.

Sony Bank’s offering of “Jointly Operated and Designated Money Trust Beneficiary Rights”, or specifically, “U.S. Dollar-Denominated Green Finance Security Token (2024 №1)“, as the product is to be called, will be the first public offering of a foreign currency-denominated security token by a domestic bank.

To commemorate the handling of this Product offering, Sony Bank will provide original digital content utilizing NFT technology to customers who purchase the Product and respond to a survey during the offering period. Additionally, eligible participants will receive cash gifts corresponding to the number of units purchased.

The Product being structured is a beneficiary right of a jointly operated and designated money trust that invests customers’ entrusted U.S. dollar funds through U.S. dollar-denominated loans to Sony Bank, among other investments.

Sony Bank will invest the funds procured through such loan in green bonds issued with the use of proceeds limited to “business activities that have a positive impact on the environment, such as climate change, water, and biodiversity measures” (commonly referred to as “green projects”).

The Product not only provides customers with a new option for foreign currency investment but also allows them to indirectly contribute to environmental conservation and reducing environmental impact through its purchase.

The Loan is expected to obtain a “JCR Green Finance Evaluation” from Japan Credit Rating Agency (JCR).

Product Overview

• Product Name: Jointly Operated and Designated Money Trust with Actual Dividend, or U.S. Dollar-Denominated Green Finance Security Token (2024 №1
• Investment Target Assets: U.S. Dollar-Denominated Loan to Sony Bank
• Offering Amount: $1,000,000.00
• Subscription Unit: 1 unit or more, in 1 unit increments, up to a maximum of 20 units; 1 unit is $1,000.00
• Management Period: 2 years
• Eligible Customers: Domestic resident individuals who have a deposit account at Sony Bank who are aged 20 or above, but under 75, and the purpose of the customer’s asset management is “to consider asset management while allowing for the risk of principal loss up to a certain percentage” or “to consider asset management while allowing for the risk of principal loss.”
• The Product is structured and issued by Sumitomo Mitsui Trust Bank and managed as electronic record transfer-issued securities rights on a private blockchain platform provided by Securitize Japan, with the recording of property value related to its issuance being performed through a series of electronic processes

Campaign Overview

As a special offer for customers who purchase the Product and respond to the survey, Sony Bank plans to conduct a campaign to provide original digital content utilizing NFT technology through the NFT marketplace “SNFT” operated by SNFT (100% owned by Sony Group Corporation), and cash gifts corresponding to the number of units purchased for eligible participants.

Green Finance ST Purchase Commemorative Digital Content
This digital content will be provided as digital data utilizing blockchain technology that is difficult to duplicate or tamper with. The digital content to be distributed this time will be provided through SNFT, which operates the NFT marketplace for the Sony Group, making it easy for those new to NFT technology to acquire.

Cash gift of 1,000 yen per unit purchased
Transaction Conditions — Meet the conditions for the first benefit, and subscribe to five or more units of the Product

The Product is subject to a lottery. Depending on the lottery results, applicants may not be able to purchase the Product. If the Product cannot be purchased, the conditions will not be met, and the applicant will not be eligible for the gifts.

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