Japanese crypto exchange to launch tokenized securities
The Osaka Digital Exchange (ODX) is poised to introduce Japan’s first trading of digital securities next month, featuring security tokens from real estate companies Ichigo Inc. and Kenedix Inc.
This initiative is geared towards catering to the growing interest in alternative assets among individual investors.
Ichigo is set to offer approximately ¥3 billion ($20.1 million) of securities backed by real estate investments, with trading slated to begin on December 25. This move by the Tokyo-based firm was detailed in a recent regulatory filing.
ODX, a proprietary trading system operator, will facilitate the trading of these security tokens, which are essentially digital assets representing ownership or interest in external assets or enterprises, fully regulated under federal securities laws.
The introduction of such tokens on an exchange is expected to deepen their liquidity and simplify the investment process for individuals. While this marks a cautious yet significant step towards embracing digital asset trading in Japan, the relatively modest amount of securities initially on offer indicates a careful approach to gauge market demand for these new investment vehicles.
Ichigo Owners is planning an issuance of tokenized securities, with the Ichigo Residence Token backed by strategically located rental properties. This token will utilize Progmat, a platform for managing digital assets, which is also being eyed by companies like Binance for stablecoin issuance.
Established in 2021, ODX is a joint venture among major players in Japan’s traditional finance sector, including SBI Holdings and Sumitomo Mitsui Financial Group (SMFG). The exchange’s proprietary trading system, Start, has recently received the green light from the nation’s financial regulator, setting the stage for the upcoming launch of digital securities trading.
Recent months have seen various developments in Japan’s digital asset landscape. The government is reportedly considering allowing startups to raise funds through ICOs, and payment firms like DeCurrent Holdings are exploring stablecoin initiatives pegged to the Japanese yen.
A consortium of Japanese corporations, also led by DeCurret, is set to introduce a digital currency, DCJPY, specifically for the transaction and settlement of clean energy certificates by July 2024.
Binance Japan is also planning to launch stablecoins denominated in the dollar, euro, and yen in Japan in 2024. The crypto exchange aims to introduce these tokens, and possibly more, through its partnership with Mitsubishi UFJ Financial Group’s trust banking arm.
