Japan’s Osaka Digital Exchange (ODX) is gearing up to introduce digital securities trading, a move that signals Japan’s growing interest in alternative asset classes. This initiative is scheduled to begin on December 25, with ODX unveiling a specialized trading system for security tokens.
Leading this innovative endeavor are two real estate companies. Tokyo’s Ichigo is set to offer over $20 million in property-backed securities. Similarly, Kenedix is preparing to launch its digital securities on the ODX platform.
Security tokens, a type of digital asset, typically represent ownership or a stake in an external asset or company. These tokens fall under the category of security tokens when they comply with federal regulations and their value is linked to external, marketable assets.
The launch of security token trading on platforms like ODX is expected to increase the liquidity of these digital assets, thereby making them more accessible to individual investors. This cautious yet forward-looking step by ODX and the participating real estate firms reflects a measured approach to integrating digitally managed securities in the Japanese market.
The initial offering, limited to $20 million, indicates that the market is still in a phase of experimentation, assessing the appetite for such novel securities.
In related news, Japan’s digital asset sector has witnessed several key developments recently. There are reports that the Japanese government is contemplating permitting startups to raise capital through cryptocurrency issuances instead of conventional stock offerings. Furthermore, a prominent electronic payments firm has disclosed plans for a yen-backed stablecoin project, targeted for a 2024 launch.
