SBI Holdings is trying to use blockchain to digitalize Japanese stocks to reduce fees and enable faster global trading.
SBI Holdings, Japan’s leading financial group, is preparing a joint venture with Singapore-based Startup Starttail Group. Together, they develop a blockchain-driven platform for digitizing stocks. Sources told TV Tokyo that the project could reduce trading fees and make Japanese stocks easier to access internationally.
SBI challenges to turn stock tokens
In this system, SBI converts stocks into “tokens,” which are digital assets, so traditional brokers may no longer be needed. This reduces transaction time to seconds and significantly reduces costs. Furthermore, global investors will have fewer hurdles to expand their participation in the Japanese stock market.
Cryptocurrencies are blamed for their high volatility, but tokenized stocks reflect stock prices and yields. Therefore, they offer a more stable alternative to traditional digital assets. SBI plans to expand tokenization beyond stocks to include bonds and ETFs. This strategy will help you create a comprehensive digital financial platform. The company is targeting market launches of tokenized stocks by late 2026 or early 2027.
As of March 2024, SBI’s banking and securities division had a strong customer base of approximately 50 million accounts. By leveraging these clients, the company aims to increase accessibility to digital asset trading. Chairman and CEO Yoshitaka Kitao sees this move as an important step towards integrating traditional funds with digital technology.
Global tokenization trends
Inventory tokens are already being used in the US. In June, online brokers Robinhood and Cryptocurrency Exchange Kraken announced plans to issue US stocks and ETFs that have been tokenized on their blockchain platform. Under President Trump’s leadership, the Securities and Exchange Commission provided guidance on whether digital assets are eligible for securities. As a result, tokenized stock markets have gained traction.
In Japan, regulatory debate on tokenized inventory is still in its early stages. Recently, the government approved the first issue of Fiat-backed stubcoins. SBI will be announcing its blockchain-based trading infrastructure at the WebX Crypto event starting August 22nd. Executives have described the initiative as a great opportunity to restructure digital finance. Furthermore, we aim to position SBI as a global platform leader.
Post-SBI launching a blockchain-based stock tokenization platform has first appeared in Beincrypto.
