Osaka Digital Exchange Pioneers Digital Securities Trading in Japan via Real Estate-Backed Tokens
Summary:
Osaka Digital Exchange (ODX) is initiating digital securities trading in Japan via security tokens issued by two real estate firms, starting from December 25. Tokyo-based Ichigo Inc. and Kenedix Inc. will offer digital securities on the platform. The move is seen as a cautious step towards embracing digital securities trading in Japan, with significant initiatives towards digital asset adoption already underway in the country, including stablecoin projects and government plans to allow start-ups to raise funds via cryptocurrencies.
In a move to initiate digital securities trading in Japan, Osaka Digital Exchange (ODX) will utilize security tokens issued by two real estate firms to cater to the growing demand for alternative assets. ODX said its security tokens' trading system will launch on December 25 in a recent release. Reportedly, Tokyo-based Ichigo Inc. will sell more than $20 million in property investment-backed securities. Additionally, Kenedix Inc. also looks to provide digital securities on the ODX platform. Essentially, security tokens are digital assets that may represent an investment in an outside entity or property. A digital token is regulated under federal law and is recognized as a security token if it takes its value from an external tradeable asset. Establishing security tokens trading on an exchange could enhance liquidity and facilitate individual investment. Japan appears to be embracing the concept of digital securities trading, albeit cautiously. The fact that a mere $20 million worth of securities are being offered suggests that evaluative steps are being taken to ascertain potential demand for alternative securities types. It's worth noting that there have been significant strides toward digital asset acceptance in Japan. On September 15, a Japanese finance news outlet reported plans by the Japanese government to allow funding for start-ups via cryptocurrency issuance instead of stocks. Electronic payments firm DeCurrent Holdings on October 12 introduced a white paper about a stablecoin initiative backed by the Japanese Yen, with a proposed launching in 2024.
Published At
11/20/2023 12:47:11 PM
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