Bitbank to Transfer All Shares of JADAT to Sumitomo Mitsui Trust Bank

Key Points of This Article

• Scheduled for transfer on October 1, transfer price undisclosed
• Trust company concept responsible for the custody of cryptocurrencies, security tokens, and NFTs

Transfer of All Shares of JADAT

Bitbank, which operates a cryptocurrency exchange, announced on the 25th that it will transfer all shares of its subsidiary, Japan Digital Asset Trust Preparation Co., Ltd. (JADAT), to Sumitomo Mitsui Trust Bank. After the transfer, JADAT is expected to become a wholly-owned subsidiary of the Sumitomo Mitsui Trust Group. SBI Holdings, which is advancing the complete subsidiary status of Bitbank, also published the same information on its website on the same day.

The transfer price has not been disclosed. Bitbank has not indicated the execution date, but Sumitomo Mitsui Trust Bank stated in its announcement on the same day that the execution date for the transfer is scheduled for October 1.

Joint Concept Initiated in 2022

JADAT is a company that has been preparing to establish a trust company specializing in digital assets based on a basic agreement reached between Bitbank and Sumitomo Mitsui Trust Holdings (now Sumitomo Mitsui Trust Group) in May 2022.

It is based on the premise of registration under the Trust Business Act, and after registration, it was planned to change its trade name to "Japan Digital Asset Trust." The custody targets included not only cryptocurrencies but also security tokens and stablecoins on public blockchains, as well as NFTs.

The custody of digital assets refers to the business of storing and managing cryptocurrencies on behalf of customers. By using the trust structure, entrusted assets can be managed separately from the trustee's own property. This is considered one of the important points for institutional investors when choosing a custody provider.

In its announcement, Bitbank explained that it has been considering a method to combine its "know-how related to cryptocurrency management" with the trust business know-how of a specialized trust bank group. As a result of discussions between the two companies, it was determined that advancing JADAT under the umbrella of the Sumitomo Mitsui Trust Group would contribute to the development of the industry, taking into account the progress of digital finance.

In June, SBI Holdings announced that it would fully acquire Bitbank through its wholly-owned subsidiary, SBICAH LLC. The acquisition price is approximately 46.7 billion yen, and the transaction is expected to be completed around October. Bitbank plans to continue leveraging its expertise in cryptocurrency management and advance collaboration with financial institutions.