User:Watami3/J-STO

J-STO is a system and fintech service utilizing blockchain technology developed by Levias Inc.

J-STO is an acronym of Japan Security Token Offering, meaning that a legitimate STO in Japan was developed in a Japanese style.

Overview
This platform enables information on various contracts and assets, which were previously managed in written or other analog ways, to be managed in a highly reliable digital format utilizing blockchain and AI technology.

Security tokens (electronic voucher), which contain proofs of the contract status, are granted to the asset holders in accordance with the equity interest. These tokens incorporate evidence information (e.g., investment agreement) based on the fact that the investor did make the investment. Investors (security token holders) can browse information on assets at any time via a program incorporated in the tokens. In addition, specific users can apply for OTC transactions relating to the transfer of contract status, perform a series of agreements and acceptance procedures accompanying various contracts, and automatically rewrite the register of different assets. Records on the blockchain are made by chain traceability and stored as trail information for AML.

Features
At present, security tokens issued by the J-STO have the properties of security certificate that serve as electronic vouchers to prove that users have specific assets or contractual rights. In current systems, simply rewriting the record on the blockchain does not have the effect of transferring the target assets or contractual rights. It is necessary to carry out procedures related to these transfers outside the system. J-STO will act as a communication tool to automate the procedures for contracts and asset transfers that have been commonly performed until now, with the flow program defined under the framework of the current Japanese law.

Concept
Deploying STOs in Japan is difficult due to legal issues, and STOs are mainly conducted overseas, where regulations are relatively loose. Japanese companies have to comply with the strict rules of the country regarding the necessary financing for business conducted in Japan. The concept of J-STO is that, if these rules are cleared, then it is possible to get international creditworthiness from the perspective of investor protection, which also lead to value creation. By emphasizing and building regulations between Japan and other countries, the Japanese market can connect with overseas ones and a de facto standard in the security token market can be established that conforms to global social rules.

History and Development
・August - Solar J-STO Development The use of security tokens through Solar J-STO will provide a new investment environment for many investors and will contribute to the revitalization of the solar fund market. ・October - J-STO Equity Development First time in Japan fund raising was performed through third-party allotment using stock-type security tokens. Levias developed a communication protocol and a dedicated interface (J-STO platform) that will enable to digitally manage funding by issuing new shares, renaming shareholder registers, and managing and processing stock-related information by applying blockchain technology. ・December - Transfer of assets (secondary transaction) was performed first time in Japan using security tokens A transfer of equity interest was conducted (OTC transaction) by using security tokens issued at the Solar J-STO in a silent agreement, which has rarely been done before. The tokens also contain the proof of the status of the investor and the transfer of contractual status has been also completed. As a result, a secondary distribution using security tokens has been implemented for the first time in Japan.
 * 2019 March - Japan’s first J-STO Development Levias has developed Japan's first J-STO, which means an STO is conducted by a business fund (group investment scheme) constructed under the framework of the current Japanese law. The goal is to connect entrepreneurs and investors without borders and create opportunities to take on global challenges. Also the aim is to build and deploy comprehensive solutions to support entrepreneurs through flexible financing by STO.