Nomura and Nomura Research Institute to develop blockchain-based platform for exchanging securities and other rights

Nomura Holdings and Nomura Research Institute (NRI) have signed a memorandum of understanding (MOU) to establish a joint venture company that will focus on developing a blockchain-based platform for exchanging securities and other rights.

The new company is expected to be established in August of this year.

According to the press release, Nomura will hold a 66% stake in the new company and NRI will hold 34%. This, however, is subject to further discussion between the two companies.

Nomura and NRI have already collaborated in the past to develop businesses that make use of the latest technologies. Back in 2015, they had trialed blockchain technology for the management of equities related information.

Furthermore, technical experts from NRI are dispatched to Nomura’s innovation subsidiary N-Village to conduct joint research into various technologies as well as create new businesses and services.

Regarding their plans to develop a blockchain-based platform for exchanging securities and other rights, the release said:

“To meet the need for more sophisticated and agile services in the securities trading business, the two companies aim to build a new platform to support corporate clients with the issuance and distribution of securities and other rights.”

Earlier this year, Nomura signed an MOU with chat giant LINE and LVC Corporation to discuss establishing a blockchain-based financial business alliance. It has also made an investment in blockchain security startup Quantstamp in March.