Osaka Digital Exchange (ODX) is set to revolutionize Japan’s financial landscape with the introduction of the country’s inaugural digital securities trading platform. The announcement, made on November 16, reveals ODX’s plans to launch the platform on December 2. This will feature security tokens issued by real estate giants Ichigo Inc. and Kenedix Inc.
Influential Figures Behind ODX’s Vision and the “START” Market for Security Tokens
Established in 2021, ODX comprises influential figures from traditional finance in Japan. This includes SBI Holdings and Sumitomo Mitsui Financial Group (SMFG). The platform aims to establish a digital stock exchange, with regulatory approval for its proprietary trading system, Start, granted by the country’s financial watchdog on November 16.
Notably, ODX’s announcement press release unveiled the name of its ST market as “START.” The platform expresses its firm belief that increased liquidity in STs will bring more funding opportunities, hence the chosen name. Also, as part of the launch, real estate firm Ichigo Owners is set to issue around ¥3 billion ($27.1 million) worth of tokenized securities.
Despite the advantages of security tokens like increased accessibility, transparency, and efficiency, liquidity has been a challenge for widespread adoption. Significantly, ODX aims to address this by providing a regulated platform for seamless trading. Further, the security token issuance will take place on Progmat, a software platform designed for issuing and managing digital assets.
The introduction of digital securities trading in Japan is expected to create new opportunities for investors. This will further foster diversification and contributing to the broader adoption of digital securities. Also, the move aligns with Japan’s efforts to offer riskier assets, addressing the funding needs of its aging population.
Japan’s Strategic Move in the Global Trend
Moreover, Japan’s push for digital securities trading aligns with a global trend, with other Asian markets taking similar steps. This includes Hong Kong and South Korea. Notably, Hong Kong has removed restrictions on security token sales. Also, South Korea has amended laws to permit the issuance and distribution of security tokens.
Anticipating Transformative Changes
As Japan’s financial landscape undergoes transformative changes, the outcomes and opportunities arising from Osaka Digital Exchange’s move are eagerly anticipated. The introduction of digital securities trading is poised to unlock trillions in household assets, tapping into the vast financial resources held by Japanese households.