Sumitomo Mitsui Trust, a Japanese bank with $664 billion in assets, will establish a subsidiary that will offer crypto custody services to institutional investors. Reported by Nikkei Asia.

Japan Digital Asset Trust will be a joint venture with 85% stake in Bitbank cryptocurrency exchange and 15% stake in the bank.

The Sumitomo Mitsui Trust believes that large investors and companies will feel more comfortable investing in and owning digital assets if a traditional financial institution with an established reputation can be trusted.

Another line of business for the joint venture will be the issuance of a yen-pegged stablecoin. The bank anticipates an increase in demand for assets such as metadata storage and the development of other interactive technologies.

The Japan Digital Asset Trust will have an initial capital of 300 million yen ($2.3 million). It is planned to increase this to 10 billion yen ($78 million) by attracting third-party investments. The new business will be registered by the end of 2022.

Tokyo-based Bitbank is second only to BitFlyer and Coincheck in terms of digital assets on the platform. The head of the exchange, Noriyuki Hirosue, is the chairman of the Japan Cryptocurrency Business Association, which brings together 112 industry members.

Recall that in May, Japan’s largest broker, Nomura, announced that a cryptocurrency focused on institutional investors will be created.