Proprietary trading system operator Osaka Digital Exchange (ODX) is set to restart digital securities trading in Japan through security tokens issued by two real estate companies to meet demand for alternative assets.
In a statement, ODX said its security token trading system will begin on December 25. Ichigo Inc., a Tokyo-based company, reportedly plans to sell more than $20 million worth of securities backed by real estate investments. Besides Ichigo, Kenedix Inc. also plans to offer digital titles within the ODX platform.
Security tokens are digital assets that typically represent a stake in an external company or asset. A digital token is classified as a security token when it is subject to regulations under federal law and its value comes from external tradable assets.
Starting security token trading on an exchange could increase its liquidity and make it easier for individuals to invest. However, while the new developments show that Japan is interested in the idea of trading digitally managed securities, the number of securities on offer amounting to only $20 million shows that the market is still testing the waters and wonders if there will be demand for these titles. these alternative forms of titles.
Related: Bitcoin Adoption Fund launched by Japanese bank Nomura, worth $500 billion
The adoption of digital assets in Japan has seen several significant developments in recent months. On September 15, a Japanese financial news site reported that the Japanese government plans to allow startups to raise funds by issuing cryptocurrencies rather than stocks. On October 12, electronic payments company DeCurrent Holdings revealed a white paper on a stablecoin project backed by the Japanese yen. According to the company, the coin will be launched in 2024.
Review: Crypto City: guide to Osaka, the second largest city in Japan