Soramitsu: The Japanese Blockchain Company Expanding Digital Payment Systems in Southeast Asia

Blockchain startup Soramitsu was catapulted into the spotlight when it received a message from the National Bank of Cambodia, which led to the launch of Bakong, a blockchain-based payment system. Since then, Soramitsu has become a leading developer of digital payment systems in Southeast Asia.

Bakong, which allows users to instantly send money in U.S. dollars or riel, has gained significant traction in Cambodia, with 8.5 million accounts now using the system. It has processed transactions worth $12.2 billion in 2022. Japanese Prime Minister Fumio Kishida has praised Bakong as an example of tech innovation that can address social challenges in Asia.

As a relatively small player in the region, Soramitsu has benefited from the lack of bigger competitors and low barriers to entry. With only around 150 employees worldwide, Soramitsu has managed to secure projects in Laos, Vietnam, and the Philippines. The company is currently piloting a blockchain payments system for the central bank of Laos and is part of a consortium working on expanding an Asian cross-border payments system.

Despite its growing prominence, Soramitsu remains relatively unknown in the banking sector. However, its success can be attributed to its unique position as a boutique blockchain company and its ability to deliver efficient and user-friendly payment systems. The company has been self-funded and profitable, with an annual revenue of around $20 million in 2022.

Soramitsu’s roots trace back to Japan and the U.S. Co-founder Makoto Takemiya, formerly known as Brett Bojduj, was born in California and eventually moved to Japan. The company’s focus on blockchain technology and its commitment to Japan’s economic growth have contributed to its success.

With the support of Japanese governmental agencies and public funds, Soramitsu continues to expand its presence in Southeast Asia. It has received grants to undertake projects in Laos, the Solomon Islands, and conducted feasibility studies in Vietnam, the Philippines, and other countries. The company’s combination of Japanese institutional backing and private development expertise has proven to be a winning formula.

Overall, Soramitsu’s achievements showcase the potential of blockchain technology in revolutionizing digital payment systems and contributing to economic growth in the region.

Sources:
– Rest of World (https://restofworld.org/2022/japanese-startup-soramitsu-cambodia-blockchain/)
– Soramitsu (https://soramitsu.co.jp/)