Toyota To Leverage Blockchain Security Token Bonds

Toyota To Leverage Blockchain Security Token Bonds

Toyota to Issue first Blockchain powered Security Token Bonds

Leveraging the blockchain technology within the bonds shows the integration between automakers and cryptocurrency.

Toyota stated that it aims to leverage blockchain technology to "enhance the connection between the Toyota Group and individual investors."

Additionally, the companies revealed that they would utilize Progmat's software-as-a-service (SaaS) "digital asset issuance and management platform" to launch the token.

Per a report from the Japanese-language media outlet CoinPost and official Toyota Financial Services press releases, the financial heavyweights Daiwa Securities and Mitsubishi UFJ Bank are also collaborating on the offering.

Toyota Security Token: All info as of date 

The firms will launch the token on the Mitsubishi UFJ-affiliated Progmat platform. The bank previously said that Progmat would work on interoperability solutions for stablecoins on different blockchain protocols.

Toyota Group offices in Tokyo, Japan.

The firms say that token-holders can enjoy a range of special benefits if they also have Toyota Wallet accounts. Toyota Wallet is the Toyota Group’s smartphone-based digital pay app.

The firm has called the token the Toyota Wallet ST (securities token) bond. Toyota Finance explained that the offering is a 1 billion yen ($6.6 million) “unsecured security token bond.”

The Toyota Wallet App

The offering is slated to mature one year after its issuance date (March 3, 2025). The firm said it would begin sales on February 20, wrapping up on February 27.

Toyota said it wants to “use blockchain technology” to “strengthen the link between the Toyota Group and individual investors.”

Reward System

Toyota Financial Services said the company would offer token holders “bonus” credit in their Toyota Wallets.

The company said it would provide investors spending over 1 million yen ($6,567) on the tokens with over $65.67 worth of Toyota Wallet credit.

Daiwa Securities is the offering’s underwriter, with Mitsubishi UFJ’s banking arm acting as the bond administrator.

Meanwhile, the Mitsubishi UFJ Trust and Banking Corporation will perform bond registry administration duties.