Security Token Offering (STO)
Fundraising/securities investment using blockchain technology
What is a Security Token (ST)?
Security Token is a legally compliant securities that are issued and managed on systems utilizing blockchain technology, which is also referred to as a digital securities.
With the enforcement of the revised Financial Instruments and Exchange Act in May 2020, security tokens are defined as "electronically recorded transferable securities rights," making them possible to handle these tokens by financial institutions.
Previously, for financial products targeting alternative assets not handled by institutions such as the Japan Securities Depository Center or exchanges, it was practically difficult to handle them in a public offering or fractional format that would generate a large volume of transactions at once, or in a format where frequent secondary market transaction. However, by digitizing and Security-Tokenizing the operation system of such financial products using technologies like blockchain, practical handling has become possible.
What is Blockchain?
Blockchain is a concept that emerged as the technological foundation for the cryptocurrency "Bitcoin." Unlike traditional centralized data management, it is a system that ledgers for recording transactions are mutually verified by multiple computers on a network, preventing external tampering.

Nomura Group's Initiatives
In August 2021, Nomura Securities conducted the underwriting and sale of Japan's first publicly offered real estate security token. Since then, it has handled many publicly offered real estate security tokens and corporate bond security tokens, providing investors with new investment options. For more details, please refer to the related links below.
Moving forward, we aim to provide a diverse range of products and services that meet client needs by utilizing digital technologies such as blockchain.
Related Links (News Releases)
Laser Digital
Laser Digital Holdings was established in Switzerland in September 2022. By establishing offices in Switzerland, the UAE (Dubai and Abu Dhabi), the UK, and Japan, we provide trading and asset management services for cryptocurrencies to overseas institutional investors and corporations, pursuing business opportunities in the rapidly growing digital asset domain.
Establishment of the "Nomura SRI Innovation Center"
In September 2020, Nomura Holdings agreed to partner with SRI International, a non-profit research and development organization based in the United States, to establish the "Nomura SRI Innovation Center" (NSIC).
NSIC was established in October 2021 as the first membership-based innovation center specifically tailored for Japanese companies. Located within SRI's campus in the heart of Silicon Valley (Menlo Park, California), it features a co-working space where member companies and SRI SRI experts work closely together on-site.

SRI, founded in 1946 in the United States, is a research and development organization engaged in fundamental research, system and product development for market deployment, and venture support. Its major clients include the U.S. government and government agencies. As one of the leading research institutes in the U.S., SRI has been responsible for innovations such as the internet, the AI assistant Siri, the computer mouse, remote surgery systems, audiovisual technology, and sanitation-related technologies. Since establishing its Japanese subsidiary in 1963, SRI has collaborated extensively with Japanese companies.

SRI has developed computer mouse, Siri, remote surgery systems, and more.
At NSIC, we connect Japanese member companies with university research institutions, technology R&D labs, and startups. Through programs tailored to member requests, including workshops and guest lectures, NSIC promotes innovation in the transfer of advanced technologies to the market, evolving business models, and innovative best practices.
While some Japanese companies have made significant achievements in Silicon Valley, many are facing challenges such as clarifying their innovation objectives and accessing startups. Through this partnership and the establishment of NSIC, Nomura aims to support the resolution of these challenges faced by Japanese companies and promote innovation on a global scale, while also striving to serve as a bridge between Japanese companies and the United States.
Related Links (News Releases)
- Nomura-SRI Innovation Center welcomes new members and plans to increase membership in 2022
- Nomura-SRI Innovation Center Will Begin Operations in July to Accelerate Adoption of Emerging Technologies Among Japanese Corporations
- Nomura and SRI International Create Silicon Valley-Based Innovation Center to Exclusively Service Corporate Japan
- In Collaboration with SRI International Establishment and Support of "Nomura SRI Innovation Center (NSIC)"
Web3
In the Web3 domain, represented by digital assets, we are engaged in business development in crypto-related businesses, digital currencies, stablecoins, and the metaverse through strategic investments and business alliances with prominent partners both domestically and internationally. We seek to create business opportunities in fundraising and other areas within Web3.
Related Links (News Releases)
BOOSTRY
BOOSTRY provides a platform for digitizing and distributing various rights, including securities, using advanced technologies such as blockchain.
To freely connect "challengers", who are fundraisers seeking to create unprecedented value, with "fans," who are the investors supporting them. We are a company that offers a next-generation fundraising model and investment experience.
Main Business
- Provide systems for securities firms and others to handle digital securities
- Provide systems for banks and others to manage the issuance of digital securities
- Provide systems for financial institutions to sell and internally manage securities
- Provide smartphone apps and other services for the digital distribution of rights other than securities
- BOOSTRY's service
Reference Information
AI Initiatives
The Nomura Group is actively engaged in the utilization of innovations and new technologies such as AI, aiming to broaden the base of individual investors and further accelerate the movement from "savings to asset formation" by providing various services that meet investor needs.
Development of new asset management methods utilizing advanced technologies such as Machine Learnings
Innovation Lab Dept. of Nomura Asset Management conducts research and development of new management methods utilizing advanced technologies from the fields of machine learning, statistics and information science. We pursue cutting-edge technology on a global scale, some of our which have been accepted at top conferences in the field of artificial intelligence, such as the Association for the Advancement of Artificial Intelligence (AAAI) and the International Joint Conference on Artificial Intelligence (IJCAI).
1. Proposal of new portfolio optimization based on extreme risk scenarios
In asset management, it is known that extreme risk scenarios such as the Global Financial Crisis or COVID-19 recession tend to result in significant losses. In the paper titled "RM-CVaR: Regularized Multiple β-CVaR Portfolio" presented at IJCAI 2020, we proposed a new portfolio construction method aimed at minimizing the expected loss in such extreme risk scenarios.
In the financial industry, risk management typically focuses on the maximum potential loss (VaR) that could occur under normal conditions, excluding extreme risk scenarios with a probability of occurrence of less than 5%. Conversely, the average loss that could occur only under extreme risk scenarios, which are excluded as "abnormal," is called "Conditional Value at Risk (CVaR)," while the threshold for exclusion based on expected occurrence is called the "confidence coefficient". However, it is known that the CVaR value is prone to significant changes if the data used in scenario analysis or the confidence coefficients are slightly altered.
In the paper, we proposed a portfolio construction method that treats CVaR, calculated under various scenario data and confidence coefficients, equivalently while minimizing the overall CVaR obtained. Experiments using multiple benchmark data confirmed that the proposed portfolio demonstrated better risk-return efficiency and reduced loss compared to other methods.
2. Proposal of a versatile stock price prediction method applicable to various market analysis
In stock price prediction, two challenges have been expected to be addressed. The first issue is the challenge of overfitting, where rare special factors in past stock price data are not recognized as "exceptions" but are instead interpreted as "important explanatory factors" for prediction, leading to a drastic decline in performance forecast. The second issue is that for certain stocks or markets being predicted, the amount of data available for prediction can be limited, and thus, even with scarce data, there is a need for methods that enable machines to efficiently learn from various future scenarios.
Innovation Lab Dept. and Assistant Professor Junpei Komiyama from New York University jointly proposed a stock price prediction method that simultaneously addresses these two challenges at AAAI 20. Specifically, in a deep learning-based stock price prediction method, we demonstrated that automatically stopping learning when the "RankIC" (Relative Ranked Information Coefficient) reaches a certain level can prevent overfitting. They also proposed a specific method for "transfer learning," which involves training models on data collected from markets other than the target market and reusing those models for predictions in other markets. In practice, our model showed better profitability results compared to existing stock price prediction models in predicting stock indices (MSCI indices) for the North American and Asian markets.
The Nomura Group plans to provide enhanced investment opportunities and added value to our clients by developing new asset management models through unique perspectives and methods.
Utilization of quantum technology in finance
Quantum technology is a focus of attention not only in Japan but worldwide. It is particularly viewed as a foundational technology key to dramatically and discontinuously advancing important technical infrastructures that serve as sources of economic and industrial policy competitiveness, such as artificial intelligence (AI) and data connectivity platforms.
The Nomura Group began exploring the use of quantum computers in February 2018 and quantum cryptography in December 2020. We are among the first to explore the application of quantum technology in financial operations within domestic financial institutions. Notably, the verification of quantum cryptography by installing quantum devices in the operational system environments of financial institutions was the first of its kind in Japan.
The Nomura Group will continue its efforts to enhance client trust and confidence by utilizing the latest technology and strengthening cybersecurity.