Capital markets News

SMBC, SBI backed Osaka Digital Exchange to launch this month. Security tokens next year

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Today Japan’s SBI announced plans to launch the Osaka Digital Exchange (ODX) on June 27. SBI first unveiled plans for the exchange in 2020 and announced SMBC as a partner the following year. Initially, ODX will provide a private transaction system for listed securities aiming to offer trading services outside of the Tokyo Stock Exchange’s operating hours. Additionally, it plans to create a secondary market for blockchain-based security tokens next year.

SBI owns 70% of ODX, with SMBC holding 20% and Nomura and Daiwa Securities each having a 5% stake. The Kanto Finance Bureau approved the ODX launch at the end of April.

Meanwhile, in late 2020, SBI announced a deal with SIX Digital Exchange for a digital asset exchange in Singapore, the Asia Digital Exchange, including for security tokens and cryptocurrencies. It is also an investor in the Boerse Stuttgart Digital Exchange and institutional crypto market maker B2C2. SBI Digital Asset Holdings is the umbrella for some of its digital assets activities, including SBI Digital Markets.

SBI has already been involved in multiple security token transactions in the primary markets, often through SBI Securities. Two of the major security token issuance platforms in Japan are MUFG’s Progmat and Nomura’s BoostrySBI is an investor in the latter.

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