In a new development for East Asia, Japanese crypto exchange Bitbank announced a partnership with financial holding company Sumitomo Mitsui Trust Holdings to establish Japan Digital Asset Trust (JADAT). 

According to an announcement sent to Cointelegraph on Tuesday, JADAT will offer custodial services and auditing and wallet insurance. The company is designed to facilitate the entrance of institutional players into the Japanese digital asset market.

Once established, the firm will specialize in custody services for digital asset holdings, including cryptocurrency, security tokens on public blockchains, stablecoins and nonfungible tokens (NFTs).

Bitbank is one of the largest crypto exchanges in Asia, with a monthly trading volume of over $5 billion, while Sumitomo Mitsui Trust Holdings is a publicly traded holding and specialized trust bank group. According to the announcement, the firms will use their expertise to contribute to the development of JADAT.

The crypto exchange and financial holdings firm have signed a memorandum of understanding, with both parties agreeing to explore the possibilities of Sumitomo Mitsui Trust Holdings investing in JADAT.

Last week, one of Japan's largest investment banks, Nomura, revealed plans to create a crypto subsidiary outside the country. This follows a recent move from the firm to offer Bitcoin (BTC) derivatives to its clients in Asia. The new subsidiary will be focusing on helping institutions invest their funds in crypto and NFTs.

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Earlier in May, e-commerce platform SBI Motor Japan announced that it would accept BTC and XRP as methods of payment. According to SBI Holdings, the e-commerce platform exports 5,000 used cars to Africa annually. This means that the African market can purchase vehicles from the company using crypto.