Japanese lender Sumitomo Mitsui to form digital asset custodian business

Japanese bank Sumitomo Mitsui Trust (OTCPK:SUTNY) (OTCPK:CMTDF) will set up a new unit offering digital asset custody services for institutional clients, according to a report by Nikkei Asia Monday. The Japan Digital Asset Trust, which will be formed as a joint venture this year, will hold digital assets like cryptocurrencies and non-fungible tokens ("NFTs"), the report said. Sumitomo Mitsui (OTCPK:SUTNY) will own 15% of the business, while Tokyo-based crypto exchange Bitbank will own 85%. The unit will have initial capital of 300M yen ($2.3M) and expects to raise enough funding to expand its capital base to 10B yen ($78M), Nikkei Asia reported. And as the risk of crypto theft has been a barrier to institutional investment, Sumitomo Mitsui (OTCPK:SUTNY) and Bitbank will team up to build a security system for the Japan Digital Asset Trust. Sumitomo Mitsui's (OTCPK:SUTNY) move comes shortly after its rival Nomura (NMR) dived into crypto derivatives trading and launched a new