Last month six Japanese organizations ran a proof of concept for the settlement of digital bond transactions using the DCJPY tokenized deposit solution developed by DeCurret DCP. Japan’s tokenization sector is dominated by real estate security tokens, with a few digital bond issuances. However, to date all security token transactions have been settled using conventional payments, introducing settlement risk. The trial transactions aimed to address this for transfers of digital bonds between Daiwa Securities and SBI Securities, with plans for the project announced in December 2025.
The digital bonds were issued on BOOSTRY’s ibet for Fin blockchain platform, with the transfers as secondary market transactions. On the cash side, the DCJPY blockchain was linked to the SBI Shinsei Bank platform, but for this trial the connectivity was manual. The transaction involved an escrow style delivery versus payment (DvP) settlement between the bond and tokenized deposit platforms. A third SBI company, the Osaka Digital Exchange (ODX), was involved as an observer with a view to using the solution in the future for its START secondary market for digital securities.
The participants claimed this was a first for digital currency securities settlement in Japan, proving the benefits of a digital workflow. However, they also identified the significant work needed to bring it to production. These include automating data linkages such as the SBI Shinsei Bank connectivity, settlement reconciliation, and order processing between the two platforms. There’s also a need for linkages to several conventional infrastructures. The group plans to move forward but with a limited set of participants who can iron out any issues before expanding it.
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