Japan officially embraces tokenization

The global trend toward tokenizing financial assets is evident, with Singapore and Hong Kong already on board. The pioneering company, Osaka Digital Exchange, is set to launch a digital securities trading platform on December 25, 2023.

Backed by major investors, including SBI Holdings and Sumitomo Mitsui Financial Group.The platform, named START and recently approved by the Japanese regulator, marks a significant step in Japan’s financial evolution.

Two real estate companies, Kenedix Inc. and Ichigo Inc., are already planning to sell tokenized financial assets on this platform. Although the initial amount is modest at $20 million, it could be a precursor to a larger-scale expansion. Economists point out that Japanese households have substantial savings, estimated at $13 trillion, mostly in unprofitable bank deposits.

By encouraging investment in digital assets, authorities hope to spark interest from investors seeking returns.This development confirms that tokenization will be a key driver in the adoption of blockchain technology, following the global trend observed, particularly in Singapore, which is emerging as an undisputed leader in this sector.