Osaka Digital Exchange Co. is set to launch Japan’s first trading platform for digital securities next month. These securities, in the form of security tokens, will be issued by real estate companies Ichigo Inc. and Kenedix Inc. This move caters to individuals seeking alternative assets that could potentially yield higher returns.
Ichigo, headquartered in Tokyo, plans to offer approximately ¥3 billion (equivalent to $20.1 million) worth of securities backed by real estate investments. Osaka Digital Exchange Co. is set to kick off Japan’s inaugural digital securities trading on December 25, as disclosed in a filing with regulatory authorities on Monday.
In a recent statement, the exchange announced the initiation of “START,” a proprietary trading system specifically designed for security tokens. This launch follows the exchange’s receipt of approval from the country’s financial regulator last week to operate a trading market for such tokens.
The move to trade these digitally managed securities aims to enhance liquidity and make it more convenient for individual investors to engage in such alternative assets. While Ichigo’s initial sale is relatively small, it reflects a broader trend in Japan to explore riskier assets that promise higher returns, particularly to address the financial needs of an aging population.