Daiwa Securities : Announces Investment in pafin Inc. and Commencement of Discussions on a Strategic Partnership for Web3 Related Businesses

Daiwa Securities Group Inc.'s Announces Investment in pafin Inc. and Commencement of Discussions on a Strategic Partnership for Web3 Related Businesses

Daiwa Securities Group Inc., together with pafin Inc., the operator of the cryptocurrency accounting and profit calculation service cryptact, have agreed to commence discussions towards forming a strategic business partnership aimed at promoting Web3-related businesses. Preceding this strategic alliance, Daiwa Securities Group Inc has decided to underwrite the third-party allocation of newly issued shares carried out by pafin Inc.

Background

Web3, the distributed internet which leverages blockchain technology, is being widely adopted across various industries including finance and is in a period of rapid market growth. In Japan, the government acknowledges it as a vital growth sector, including it in its comprehensive policy guidelines and a 5-year program targeting startup cultivation.

Daiwa Securities Group Inc. has been tracking the rapid development of the Web3 sector and recognizes it as a field with the potential for further growth. In contributing to the sound development of the industry, Daiwa Securities Group Inc. has undertaken various initiatives. Its core subsidiary, Daiwa Securities, is the leading (*1) underwriter of security tokens in Japan and has undertaken 22.6 billion Yen in issuance since launching the business in February 2022. Additionally, its group company, Fintertech Co. Ltd., established in 2017, has been providing Japan's first cryptocurrency-backed loans since March 2020.

pafin Inc. released cryptact, a cryptocurrency accounting and profit calculation service in December 2017. In June 2023, they launched defitact - labeled "Your Web3 Sidekick" - a service that visualizes on-chain transactions and assets on multiple blockchains. By providing critical infrastructure for Web3, pafin Inc. is working towards providing the backbone for a constructive and sustainable adoption of the technology.

Daiwa Securities Group Inc. and pafin Inc. are now poised to integrate their financial and Web3 technical expertise, aiming to forge a strategic business alliance to enhance their respective business operations and stimulate joint development in the Web3 field. Further details of the partnership will be announced at a later date.

(1) As of August 2, 2023.

About Daiwa Securities Group Inc.

Head Office

GranTokyo North Tower

9-1, Marunouchi 1-chome,Chiyoda-ku, Tokyo 100-6751, Japan

President and CEO: Seiji Nakata

Commencement of Operations: April 26, 1999https://www.daiwa-grp.jp/english/

About pafin Inc.

Head Office

Kojimachi HF Building 5F, Kojimachi 3-2-4, Chiyoda City, Tokyo, Japan 102-0083

Rep. Directors: Amin Azmoudeh, Co-CEO Gaku Saito, Co-CEO

Date Founded: January 2018 https://www.pafin.com/en

pafin's service offerings

cryptact - crypto-asset profit and loss calculation service https://www.cryptact.com/en

The leading crypto-asset profit and loss calculation platform in Japan with over 100,000 domestic users. It provides automatic profit and loss calculations for crypto-assets and asset management services to support tax return filing needs.

defitact - Your Web3 Sidekick https://www.defitact.com/en

A service to visualize, analyze and manage your DeFi assets, NFTs and on-chain transactions through a highly intuitive and interactive interface.

fintact - financial information and societal trading platform https://en.fintact.io/

Financial information platform to support investment decisions. It provides unique content on finance, economics, and investment for individual investors. It includes Ideabook - a portfolio simulation and investment SNS tool - and open 1on1 - an IR service for corporations to attract individual investors.