Toward the sound development of the STO market
We named the company “Standard Capital” with the aim of “creating investment standards in Japan”. In modern society, where emerging industries such as blockchain and AI technology are creating new business models one after another, even when trying to start a new business, it often ends up being unable to take an action due to lack of funds. In particular, many venture companies and SMEs often have to give up because of the time it takes to raise funds even if they have a business model they want to establish.
There is another problem, that only a limited number of investors can invest in listed stocks due to large minimum investment requirements. Because it is difficult to invest in companies that you want to support in this way, you are currently facing a loss of investment opportunities. The reality of a society where more people can challenge business opportunities implies that experiencing more failures leads to success. As a solution, we are working on the development of security token protocol.
This makes it possible for businesses who have not been able to participate in the investment process to invest aggressively, enabling companies to procure small funds and speedy remittances. We are working on security token development to change the way we raise funds in Japan. Development of a security token standard in Japan has started since its inception, and in March 2019 Standard Capital, Early Works, and IDCM announced an alliance for JP standard development.
Three companies are jointly conducting a transaction, processing speedy demonstration experiment, standing for mutual development through the sharing of technical information. In the future, JP standard technology will be developed with the goal of using blockchain technology for securities trading. The JP Standard Development Team is comprised of successful entrepreneurs, experienced blockchain developers, and numerous fintech engineers.
In June 2019, we signed a business alliance with Rare Earth Asia Technologies, Philippines. The business alliance has been agreed in order to establish a joint venture to operate the security token exchange, and the provision of JP technology to the exchange. The joint venture will be established in the Cagayan Special Economic Zone in the Philippines, and we are working to expand our overseas business.
The purpose of this business alliance is to explore various business synergies that contribute to the development of the security token market in Japan and Asia. After discussions with ABACA, we plan to open a security token exchange in January 2020. We will work to create a secondary market based on laws and regulations.