Progmat, the operator of Japan’s largest tokenization platform, is planning to launch tokenized stocks next year. The ultimate goal is to support 24/7 trading in one yen increments. The Japanese legal requirements for tokenization are seen as holding back progress, so a private sector working group will draft a “Tokenization Act” within six months. Progmat is the convener of the Digital Asset Co-Creation Consortium (DCC) which has 315 members, so the working group sits within the DCC.
Progmat was founded by Japan’s largest bank MUFG and is also backed by the other big three banks, SMBC and Mizuho. Other investors include SBI, the Tokyo Stock Exchange operator JPX and NTT Data, owner of the major bond post trade infrastructure.
The Japanese tokenization market is moderately active, but with a narrow group of instruments. It is dominated by real estate tokens, with each token requiring a trust structure and the beneficiary certificates are tokenized. A few bonds have also been issued,
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