Osaka Digital Exchange to pioneer digital securities trading in Japan

Japan’s Osaka Digital Exchange (ODX) has decided to take the lead in launching the country’s first digital securities trading with its new platform that is scheduled to go live on 25 December.

In a press release dated today, 20 November, the exchange announced the commencement of its security token trading system called ‘START’, which would be a first of its kind in Japan.

Just last week, ODX had obtained approval for operating the Securities Token Proprietary Trading System (ST PTS) from the country’s regulatory watchdog, the Financial Service Agency. The announcement also revealed the two official logos of SMART.

As per the exchange, ST will be the first case handled on the START system, which is a Private Trading System (PTS) intended for ST circulation by the ODX. This allows trading at market prices and the publication of trading prices, enhancing transparency for investors.

ODX itself was established in April 2021 with the goal of operating Japan’s first ST circulation market. In June 2022, it began operating a PTS for stocks, contributing to the revitalisation of financial markets.

The exchange is made up of Japanese heavyweights from traditional finance, including SBI Holdings and Sumitomo Mitsui Financial Group (SMFG).

It now expects the launch of the ST circulation market to activate the ST issuance market and increase the number of START-handled brands. The operation period of the ST is approximately five years and two months.

The latest press release also commits to high investor transparency. The exchange has promised that investors holding the ST will receive information through a dedicated site in addition to trading prices and disclosure information on START.

It also revealed how the ST targets properties like GRAN PASEO Shiba Park, GRAN PASEO Higashi-Shinjuku, PASEO Toritsu-Daigaku North & South, GRAN PASEO Monzen-Nakacho, GRAN PASEO Takaido, and THE PASEO Shin-Koiwa II.

These rental residences are located in Tokyo’s 23 wards, forming a portfolio of six properties built within the last two years. The total issue price is expected to be 2.925 billion yen, which is around $13 million.

Securities token management firm, Progmat, recently illustrated how the total assets under management for publicly offered real estate ST projects reached 129.3 billion yen, about $871.9million, in Japan as of 13 November.