SBI Holdings and SMFG announce launch of a blockchain-based digital securities exchange

Financial conglomerate SBI Holdings and Sumitomo Mitsui Financial Group (SMFG) will launch a digital securities exchange based on blockchain technology. It will begin operations in spring 2022 in Osaka, Japan, according to Nikkei Asia.

The operator of the new platform will be Osaka Digital Exchange, 60% of which will be owned by SBI. The remaining 40% will go to SMFG.

The platform will be built on its own trading system and electronic marketplace. The latter will enable transactions outside the regular public exchange.

Trading of digital securities will begin in 2023. SBI said that the form of security tokens would simplify investments in non-traditional assets, such as real estate, as well as rights to distribute artworks and films.

According to SMFG representatives, the subsidiary broker Nikko Securities will route a portion of client orders to the platform.

The creation of a blockchain exchange is part of Osaka’s initiative to become a regional financial hub capable of competing on equal terms with Tokyo, Hong Kong and Singapore.

Earlier in December SBI announced the launch in Singapore blockchain platform for institutional clients. The group’s partner became the digital arm of SIX Swiss Exchange, Switzerland’s largest stock exchange.

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