tl;dr
SBI Holdings is developing a blockchain platform to digitize Japanese equities by converting traditional shares into digital tokens, aiming to lower trading fees and speed up global market access. Partnering with Singapore’s StarTail Group, the initiative will streamline transactions by removing the...
SBI Holdings is pioneering a blockchain-powered platform to digitize Japanese equities, aiming to reduce trading fees and accelerate global access to Japan’s stock market. In collaboration with Singapore-based StarTail Group, the initiative will convert traditional shares into digital “tokens,” streamlining transactions by eliminating the need for conventional brokers.
This tokenization promises near-instant transaction speeds and significant cost reductions. By mirroring actual stock prices and yields, tokenized shares offer investors a stable asset alternative to volatile cryptocurrencies. SBI plans to extend tokenization beyond equities to bonds and ETFs, aiming to build a comprehensive digital financial ecosystem by late 2026 or early 2027.
Leveraging its robust customer base of approximately 50 million accounts, SBI intends to enhance digital asset trading accessibility. Chairman and CEO Yoshitaka Kitao emphasizes this move as a pivotal step toward integrating traditional finance with cutting-edge digital technology.
The trend toward stock tokenization is gaining global momentum, with the United States seeing significant developments, such as plans by Robinhood and Kraken to issue tokenized stocks and ETFs. Regulatory frameworks in the US have evolved to clarify digital assets’ security status, helping propel tokenized equity markets forward. In contrast, Japan’s regulatory environment remains nascent but is gradually opening up, highlighted by recent approvals for fiat-backed stablecoins.
SBI will showcase its blockchain-based trading infrastructure at the upcoming WEBX crypto event, positioning itself as a leader in the evolving digital finance landscape. This initiative signals a significant transformation in how equities will be traded globally, merging traditional financial markets with innovative blockchain technology.