[NEWS] Mitsubishi UFJ Trust and Banking Corporation to collaborate with Ginco to offer Japan's first "cryptocurrency trust"

Mitsubishi UFJ Trust and Banking Corporation announced on the 31st of last month that it has begun collaboration with Ginco, which operates a cryptocurrency wallet business, etc., to provide Japan's first "cryptocurrency trust."

With the aim of making Japan a healthy and attractive cryptocurrency issuance market, the company will realize a scheme that allows cryptocurrency issuers to apply appropriate tax systems and institutional investors to invest in cryptocurrencies.

The goal is to commercialize the system during fiscal 2023, and together with Ginco, Financier, Headline Asia, and other joint study participants, the company aims to complete the necessary procedures with the relevant authorities and implement the system in line with the vesting of the target tokens.

Mitsubishi UFJ Trust and Banking Corporation has obtained two patents for cryptocurrencies in line with the enforcement of the Payment Services Act, which stipulates regulations regarding cryptocurrencies, prior to the development of "Progmat," a platform for issuing and managing digital assets in general. It seems that the company has been exploring the possibility of providing a cryptocurrency trust for about six years.

The reason why Mitsubishi UFJ Trust and Banking Corporation decided to offer cryptocurrency trusts is due to a legal amendment made in October last year. This has made it possible for trust banks themselves to provide custody services in Japan.

Prior to the amendment, regulations were strengthened following the cryptocurrency leak incident in 2018, and banks themselves were not able to carry out cryptocurrency-related business.

It is also believed that the amendment was influenced by the fact that cryptocurrency that met certain conditions, such as in-house issued tokens, was no longer subject to end-of-period market value valuation following the announcement of the legal interpretation by the National Tax Agency in June this year.

This tax amendment has made it easier than ever for startups that issue cryptocurrency to expand their business, and this has led to an increase in demand for cryptocurrency trusts.

Ginco, which will collaborate this time, handles the "Ginco Enterprise Wallet," a business cryptocurrency wallet used by financial institutions such as cryptocurrency exchanges.

Based on this track record, Ginco will provide the functions of the "Ginco Enterprise Wallet" as well as the technical knowledge necessary for cryptocurrency management on the public blockchain.

Mitsubishi UFJ Trust and Banking will develop cryptocurrency trust schemes and provide trust services as a trustee for the service. The bank will also handle custody, including private key management for the cryptocurrency held in trust.

Mitsubishi UFJ Trust and Banking has been stepping up its activities in the Web 3.0 field this year.

This month, it announced a partnership with NTT Data to build a standard infrastructure for digital corporate bonds. In addition, in June, it began a technology partnership with Datachain and TOKI with the aim of building a cross-chain infrastructure for stable coins issued on public blockchains.

Reference:Announcement
Image: Quoted from the announcement