Japan’s ODX Ventures into Digital Securities Trading

These security tokens, representing ownership in external assets, aim to tap into the demand for alternative assets.

Japan's ODX Ventures into Digital Securities Trading
Japan's ODX Ventures into Digital Securities Trading

In response to the demand for alternative assets, proprietary trading system operator Osaka Digital Exchange (ODX) plans to launch the trading of digital securities in Japan via security tokens issued by two real estate firms.

ODX announced in an announcement that its security token trading system will go live on December 25. Ichigo Inc., a Tokyo-based corporation, reportedly intends to sell securities supported by real estate investments for more than $20 million.

Kenedix Inc. intends to offer digital securities on the ODX platform in addition to Ichigo. Security tokens, which typically represent a stake in an external enterprise or asset, are digital assets.

When its value is derived from external tradable assets and it is subject to regulations under federal law, a digital token is classified as a security token.

Initiating security token trading on an exchange may facilitate individual investments and increase the platform’s liquidity.

The $20 million worth of securities offered is evidence that, despite recent developments showing that Japan is becoming more open to the idea of trading digitally managed securities, the market is still determining whether such alternative forms of securities will be in demand.

The adoption of digital assets in Japan has undergone several noteworthy developments over the last few months.

According to a report by a Japanese financial news site on September 15, the Japanese government intends to permit businesses to generate capital through the issuance of cryptocurrencies as opposed to stocks.

The electronic payments company DeCurrent Holdings published a white paper on October 12 detailing a stablecoin initiative that will be backed by the Japanese yen.

The firm asserts that the coin will be introduced in the year 2024.