Japan to allow foreign investors in blockchain security tokens

Key facts

• SBI Securities and Daiwa Securities are launching a new system for blockchain-based security tokens.
• The system will enable foreign investors to access Japanese businesses and real estate.
• SBI Holdings is issuing security token bonds for retail investors, using blockchain for issuance and settlement.
• These bonds will trade on the Osaka Digital Exchange's START platform.
• Investors in SBI's bonds will receive XRP benefits.
• The initiative aims to expand investment in Japan's private equity market.

SBI Securities and Daiwa Securities are set to launch a jointly developed settlement system that will permit foreign investors to invest in Japanese businesses and real estate through blockchain-based security tokens. This move is part of a broader effort to expand access to Japan's growing private equity market, which the government aims to bolster with a five-year startup development plan targeting 10 trillion yen in investment.

SBI Holdings is also preparing to issue its first security token bonds for individual investors in Japan, utilizing blockchain infrastructure for issuance and settlement instead of traditional systems. These bonds, dubbed SBI START Bonds, will be tradable on the Osaka Digital Exchange's START platform starting March 25, 2026. Investors purchasing these bonds will be eligible to receive XRP benefits. This initiative aligns with Japan's strategy to integrate tokenized assets into regulated capital markets and modernize financial infrastructure.

Tokio Marine Asset Management, alongside SBI Securities, Shinsei Trust & Banking, and BOOSTRY, has developed a scheme for security tokens representing beneficial interests in trusts for private equity investments. This product aims to provide individual investors with access to unlisted company stocks, overcoming barriers such as high minimum investment amounts and long lock-up periods that typically limit PE investments to institutional investors. Tokio Marine Asset Management will act as a gatekeeper, selecting excellent PE funds for diversification.