This November, Toyota will put its foot in the blockchain world with its first ever blockchain powered security token bonds. The management responsibility of this project is with Toyota Financial Services, with contributions from Daiwa Securities, MUFG Bank, Mitsubishi UFJ Trust and Banking and Progmat.
The 1 billion yen ($6.6 million) Toyota Wallet ST Bond will be unsecured, with no physical assets backing the bond and allowing buyers to sell it anytime after issuing. After one year of issue, it will mature. Those who purchase more than 1 million yen ($6,567) of these bonds will be rewarded with approximately $65.67 bonus credits convertible in Toyota’s digital payment app, Toyota Wallet.
The bonds will be issued and managed using Progmat’s blockchain platform. Blockchain is a secure technology to both store and track the data. This will allow Toyota to be closer to investors, make investors more comfortable and the process smoother and more transparent.
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Toyota is working on a system to offer digital finance and the bonds are part of that. The company hopes to develop the relationship with individual investors through blockchain. Additionally, investors will be offered special benefits if they pair their Toyota Wallet accounts with their bonds.
The bond is underwritten by Daiwa Securities, which will facilitate the sales to investors. It also said that the bond registry will be administered by Mitsubishi UFJ Trust and Banking Corp while the financial operation will be handled by MUFG Bank.
This new step represents the commitment to financial innovation and the aim to remain ahead in the digital world on Toyota’s behalf.
With blockchain powered bonds, Toyota is uniting finance and technology to provide a new avenue for people to invest in the company’s future.
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