Yesterday Japanese stock exchange JPX announced the creation of a new digital subsidiary JPX Market Innovation & Research, or JPX Research Institute for short. The operator of the Tokyo Stock Exchange will focus on data and index services but will also include blockchain and distributed ledger technology. The business will commence in April 2022. However, the initial capital allocated to the subsidiary is just Yen 100 million (less than $1m).
JPX said it wanted to foster a different culture not constrained by a traditional exchange framework. “Changes in the external environment are rapidly proceeding, such as the movement toward creating a market that is separate from the traditional financial and capital market frameworks using new digital technologies such as blockchain,” said the company in a statement.
Last year the company was involved in a blockchain-pilot for post-trade.
There are already multiple blockchain-based securities platforms in progress in Japan, although most will not compete directly with JPX. And at this stage, it’s unclear whether JPX Research will focus on blockchain for post-trade processes or natively digital securities. The latter is the emphasis of several Japanese initiatives such as MUFG’s Progmat platform for security tokens and SBI”s Osaka Digital Exchange where SMBC, Nomura and Daiwa are also shareholders.
Article continues …

Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.