Sumitomo Mitsui Trust Group Eyes 2026 Commercialization with Landmark Public Blockchain Tokenization Project
Sumitomo Mitsui Trust Group (SuMiTG) has announced a new proof-of-concept initiative to tokenize a Cayman Islands-domiciled money market-type fund on a public blockchain.
Led by its subsidiary, Sumitomo Mitsui Trust Bank (SuMiTB), the project aims to pave the way for the full-scale commercial issuance of digital securities within fiscal year 2026. If successful, SuMiTG believes this will mark the first time a Japanese trust bank has issued tokens representing beneficial interests in foreign investment trusts via a public blockchain.
The Mechanics of the Framework
The initiative relies on a fully integrated operating framework utilizing SuMiTG’s internal ecosystem alongside third-party digital asset specialist firms:
- Issuance & Tokenization: SuMiTB will manage tokenization, issuance, and redemption operations, supported by Securitize Japan and Fireblocks.
- Fund Management & Governance: Investment management will be handled by Amova Asset Management UK Limited, with G.A.S. (Cayman) Limited serving as the trustee.
- Administration & Custody: SMT Fund Services (Ireland) Limited will act as fund administrator and transfer agent, while Sumitomo Mitsui Trust Bank (U.S.A.) Limited will oversee global custody.
The tokenized beneficial interests will be classified as "electronically recorded transferable rights to be indicated on securities, etc." under Japan's Financial Instruments and Exchange Act.
Capitalizing on Global Momentum
The move comes amid a rapid global expansion of tokenized funds, particularly in North America, where the tokenized Money Market Fund (MMF) sector has surged by approximately 350% or more for two consecutive fiscal years since March 2024.
Through this PoC, SuMiTB intends to address public blockchain challenges—including investor protection—while accumulating operational know-how across its asset-management value chain.
Norbert Gehrke
