Tokyo-based cryptocurrency exchange Bitbank has announced a new deal with financial company Sumitomo Mitsui Trust Holdings to create Japan Digital Asset Trust.
The companies have signed a memorandum of understanding agreeing to look into the option of Sumitomo Mitsui Trust Holdings investing in JADAT.
JADAT will reportedly offer custodial services and auditing and wallet insurance as part of a bigger plan to open the Japanese digital asset market to the institutional players.
The new outfit will deal in custody services for digital assets holdings comprising cryptocurrencies, public blockchain, stablecoins, and non-fungible tokens.
Bitbank is one of the top cryptocurrency exchanges in Asia, with more than $5 billion in monthly trading volumes. Sumitomo Mitsui Trust Holdings is a public traded company and a specialized trust bank unit.
The announcement follows a similar step by Nomura on plans to develop a cryptocurrency subsidiary outside of the country. The entity is expected to assist institutions in investing funds in crypto and NFTs.