- Osaka Digital Exchange is set to commence Japan’s first digital securities trading next month.
- The exchange introduced “START,” its proprietary trading system for security tokens, with plans to sell over $20 million of Ichigo’s securities.
- The announcement comes a week after obtaining approval to operate the security token trading system.
Japan’s Osaka Digital Exchange will commence Japan’s first digital securities trading next month in the form of security tokens issued by Tokyo-based real estate investment companies Ichigo and Kenedix.
On November 16, Osaka Digital Exchange announced the plan to commence the operation of its platform named “START,” a proprietary trading system for security tokens. Bloomberg reported that Ichigo would sell approximately ¥3 billion ($20.1 million) of real estate securities. The amount is backed by property investments, and according to a filing with the authorities, trading would start on December 25.
The exchange shared earlier that it has obtained approval for operating the security token trading systems from the Financial Service Agency. The exchange stated, “We have named our security token market “START”, as it is our firm belief that the more liquidity of STs the start of START will bring, the more funding opportunities there will be.”
Bloomberg claimed that Osaka’s trading system aims to increase liquidity and make trading easier for individual investors. Furthermore, reports claimed that Ichigo’s “relatively small” sale could suggest that market players were still testing out the demand for the security tokens.
Bloomberg also reported that Ichigo has structured digital securities in the past that invested in residential properties. However, the securities focused on smaller deals targeted at individual investors and business owners.
Moreover, the scale of Japan’s security token offerings market is not big, according to Bloomberg. The market is focused on the securitization of real estate and logistics facilities. Digital securities issuance and management platform Progmat stated that the outstanding balance of issuance is 127 billion yen.
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