Nomura, Daiwa to launch stablecoin securities trading with Japan's top 3 banks

Japanese financial firms Nomura and Daiwa Securities are partnering with the country's three major banks to establish a system for trading assets like stocks and bonds using stablecoins, Nikkei reported. The collaboration will utilize a fiat-pegged stablecoin jointly issued by Mitsubishi UFJ Asset Management, Sumitomo Mitsui, and Mizuho. The firms plan to register with financial authorities as early as this month before launching a pilot program. Under the new system, assets including stocks, government and corporate bonds, investment trusts, exchange-traded funds (ETFs), and money market funds (MMFs) will be converted into digital securities. When a buy order is executed at a brokerage, the transaction will be settled with the stablecoin, and the rights will be transferred to the buyer. The initiative aims to enable 24-hour securities trading and may expand to include more participating institutions in the future.