Monex, Inc. announced that, together with five other securities companies including SBI Securities Co. Ltd., kabu.com Securities Co. Ltd., Daiwa Securities Co. Ltd., Nomura Securities Co. Ltd., and Rakuten Securities, Inc., it has established the Japan Security Token Offering Association, a General Incorporated Association, Headquarters: Minato-ku, Tokyo; Chairman: Yoshitaka Kitao; hereinafter "the Japan STO Association") effective, October 1, 2019. As a General Incorporated Association, the Japan STO Association primarily works to develop self- regulations regarding security token offerings ("STO"), a form of digital financing methodology, with an aim of the healthy development of STO fund-raising model. In financing through an STO model, issuers offer investors security tokens, securities issued through digital means such as blockchain, instead of issuing equities and other securities as in a traditional financing model. Unlike initial coin offerings ("ICO"), which has experienced some fraudulent cases, issuance and trading of security tokens are legally recognized and prescribed. STOs have been gaining popularity in the U.S. and other countries as a new methodology of financing. Japan is also following the trend and is ensuring that sufficient conditions are in place for STOs to become widely used.