Author: Ariel, CryptoCity
SBI Holdings and Ondo Finance Forge Strategic Alliance to Tokenize Japanese Stocks, Pioneering a New Era of Digital Assets
In a landmark move set to redefine the landscape of digital finance, Japanese financial powerhouse SBI Holdings has officially announced a strategic partnership with leading U.S. Real World Asset (RWA) tokenization platform, Ondo Finance. This collaboration, unveiled on July 16th, marks a pivotal step towards tokenizing Japanese equities and other assets, integrating them into Ondo’s cutting-edge on-chain platform, and subsequently distributing these innovative tokenized products across SBI’s expansive ecosystem.
The alliance aims to bridge one of the world’s most sophisticated capital markets with the rapidly evolving tokenized economy. Ian De Bode, Ondo Finance’s newly appointed CEO, highlighted Japan’s robust and mature capital market, with SBI Group at its epicenter. “This partnership will unlock significant pathways for Japanese assets to transition onto the blockchain,” De Bode stated. Echoing this sentiment, Yoshitaka Kitao, President of SBI Holdings, emphasized Ondo Finance’s established global leadership in the tokenized asset and stock market. “Ondo Finance will serve as a crucial strategic partner for SBI Group as we construct a global digital asset corridor, and we are committed to swiftly advancing these initiatives,” Kitao affirmed.
JPYSC: The Trust-Type JPY Stablecoin at the Core of On-Chain Transactions and Collateral
Central to this groundbreaking collaboration is the planned integration of JPYSC, a trust-type Japanese Yen stablecoin developed by SBI Group. JPYSC is slated to function as the primary on-chain settlement and collateral instrument for all tokenized asset transactions within the partnership’s framework.
Jointly developed by SBI Group and blockchain startup Startale Group (backed by Sony and SBI), JPYSC made its debut on June 24th this year, distinguishing itself as Japan’s first stablecoin to utilize a trust-based mechanism.
Japan’s Payment Services Act provides clear legal classifications for stablecoins. While common JPY stablecoins like JPYC, issued by fund transfer service providers, are classified as Class 1 electronic payment instruments suitable for real-time public chain transactions catering to individuals and Web3 developers, JPYSC offers a distinct advantage.
JPYSC is categorized as a Class 3 electronic payment instrument issued by a trust bank. Its trust-type design eliminates upper limits on issuance and redemption amounts, making it uniquely suited for large-scale settlements and collateral requirements from institutional investors and corporations.
- Related Report: Japan’s First Trust-Type JPY Stablecoin! SBI Launches JPYSC, Applicable in 3 Major Scenarios
SBI’s Ambitious Foray into On-Chain Finance Fuels Ondo’s Tokenized Market Expansion
This strategic alliance with Ondo Finance is the latest testament to SBI Group’s aggressive and comprehensive foray into the on-chain finance sector.
Over the past month alone, SBI has demonstrated its commitment by becoming the sole investor in financial risk custody platform Gauntlet’s $125 million Series C funding round and crypto trading platform EDX Markets’ $75 million Series C. Further solidifying its digital asset footprint, SBI acquired Japanese exchange Bitbank for nearly $289 million in June and forged a partnership with the Solana Foundation to jointly develop an on-chain financial market in Japan.
The partnership also capitalizes on the accelerating global trend of asset tokenization. According to Ondo’s official website, Ondo Finance currently supports 12 blockchains and boasts an impressive Total Value Locked (TVL) of approximately $3.6 billion, positioning it as a frontrunner in the Real World Asset (RWA) domain.
Data from The Block further illustrates the burgeoning market, with the global market capitalization of tokenized stocks nearing $13 billion, representing about 15% of the total tokenized asset market. Asset-backed credit and U.S. Treasuries currently constitute the largest segments within this rapidly expanding sector.
As this transformative partnership unfolds, further details regarding specific service offerings, target clientele, operational regions, and launch timelines will be progressively disclosed, contingent upon adherence to relevant legal and regulatory frameworks. SBI and Ondo Finance are steadfast in their commitment to forging a robust bridge that connects the vibrant Japanese capital market with the dynamic global tokenized economy for investors worldwide.
(This content is an authorized excerpt and reproduction from our partner, CryptoCity.)
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