According to PANews, Mizuho Securities in Japan has collaborated with Blue Sky Solar to fund solar energy projects through a private security token offering (STO). While institutional issuance of security tokens is common in Japan, it primarily involves real estate tokens and a few digital bonds. Mizuho claims this is Japan's first tokenized infrastructure private fund.
The tokenization is linked to the revenue of a limited liability company (LLC) that has acquired eight solar power facilities, generating 9.5 megawatts of electricity, enough to supply approximately 9,000 households. Blue Sky Group has a long-standing history in this sector, having managed 376 projects with a total generation capacity of 318 megawatts.
Japan's adoption of tokenization aims to reduce management and costs, but the investment structure involves two entities. Blue Sky Asset Management oversees the LLC's assets, while token equity is invested through a limited partnership. Mizuho notes that tokens can only be transferred upon the request of token holders and approval from the token issuer.
The issuance utilized the iBet for Fin tokenization platform developed by BOOSTRY, founded by Nomura Securities. This platform is Japan's second most popular digital securities blockchain network, with Progmat being the leader. Ironically, Mizuho's parent company is an investor in Progmat. A year ago, iBet for Fin was used for another sustainable token issuance, a green bond issued by Hitachi.