Osaka Digital Exchange (ODX) plans to launch the trading of digital securities in Japan via security tokens issued by two real estate firms, Ichigo and Kenedix.
ODX announced that its security token trading system will go live on December 25. Asset-backed securities supported by real estate investments are reportedly for sale by Ichigo, a Tokyo-based firm, for more than $20 million. Kenedix intends to offer digital securities on the ODX platform in addition to Ichigo.
Typically, security tokens signify a portion of a stake in an external asset or enterprise. A digital security token complies with federal regulations and obtains value from external tradable assets.
Security token trading on an exchange may facilitate individual investments and increase the platform’s liquidity. The mere $20 million in securities offered indicates that the market is still assessing whether such alternative forms of protection will be in demand, even though recent developments suggest that Japan is becoming more receptive to digitally managed securities trading.
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.
DeCurrent Holdings, an electronic payments corporation, published a white paper on a Japanese yen-backed stablecoin initiative on October 12. The firm anticipates the introduction of the coin in 2024.