[NEWS] Toyota to issue first security token bond in the group

Toyota Financial Services announced on the 10th that it will issue the Toyota Group's first publicly offered ST (security token) bond, the Toyota Wallet ST Bond. The bond will be priced at 1 billion yen and will have a maturity of one year. Each unit will cost 100,000 yen and the subscription period will run from February 20th to February 27th.

In its announcement, Toyota explained that by using blockchain in the ST it will issue, "it will be possible to further strengthen the bond between the Toyota Group and individual investors." Taking advantage of this feature, Toyota will be offering special gifts through the Toyota Group's payment app, TOYOTA Wallet.

The gift will be in the form of TOYOTA Wallet balance, and the amount you receive will vary depending on the amount of ST you purchase. Through the gift, Toyota hopes to increase the number of users who sympathize with and support the Toyota Group's business and activities. In addition, Toyota will contribute to the development of the market together with businesses that are considering issuing ST bonds in the same way. In order to receive the gift, you will need to install the TOYOTA Wallet app and register your customer information.

The ST will be issued using Progmat SaaS, a digital asset issuance and management platform provided by Progmat. By sharing information between TOYOTA Wallet and Progmat, the company will be able to grasp investor information in a timely manner and provide services based on the latest information. Daiwa Securities, Mitsubishi UFJ Bank, and Mitsubishi UFJ Trust and Banking Corporation will also cooperate in the issuance.

The size of the ST market was about 270 billion yen as of the end of last year, but it is expected to grow further by 2025. In its "Digital Securities (ST) Market Outlook 2025" released earlier this year, Progmat predicted that the market size would grow to about 645.5 billion yen.

This was calculated based on the increase in the number of ST cases, and the cause of this is the emergence of new tokenized assets that are not limited to traditional STs. While real estate STs currently account for the majority, this year is expected to see the emergence of a wide variety of STs, as issues regarding the trust tax system regarding movable property STs such as infrastructure, equity STs, and overseas asset STs such as overseas real estate are expected to be resolved.

While there are still certain hurdles to overcome in issuing and handling STs, Toyota's efforts this time may contribute to raising awareness, etc.

Reference: Press
Image: Quote from the announcement

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