SBI, Ondo to Tokenize Japanese Stocks

SBI Holdings reached an agreement with U.S.-based asset manager Ondo to develop tokenized securities tied to equities listed in Japan. The project will create blockchain-based tokens that either represent legal claims on underlying shares or mirror economic ownership through structured products.

Ondo will provide token engineering, custody solutions and experience in digital-asset products. SBI will use its domestic distribution channels and market access to offer the tokens to investors. The partners plan to issue and settle the tokens on public or permissioned blockchain networks, though specific networks have not been disclosed.

According to the partners, the offering targets both retail and institutional investors by enabling fractional ownership and potentially faster settlement compared with traditional share transfers. Tokenized equities are expected to allow purchases of smaller portions of high-priced stocks, trading outside standard market hours and access to secondary markets built on blockchain infrastructure.

Implementation requires coordination with Japanese regulators and compliance with securities laws and investor protection rules. Any issuance must meet disclosure, custody and anti-money-laundering requirements under Japan’s Financial Services Agency and related frameworks. Market participants expect the project to clarify how voting rights, dividends and corporate actions will be handled for token holders.

The partners did not disclose a timeline, the specific stocks to be tokenized, custody arrangements or which blockchain networks will be used. They indicated pilots and phased rollouts are likely to test regulatory compliance and market demand before wider distribution.

Tokenization converts ownership rights in an asset into a digital token recorded on a blockchain, allowing easier fragmentation and automated settlement. Japan has been developing rules for digital-asset services, and several financial institutions have explored digital securities, stablecoins and related infrastructure. SBI has participated in prior blockchain and crypto initiatives, and Ondo has issued tokenized funds and digital securities in other markets.

Observers will watch regulatory filings and pilot results to see whether tokenized equities attract Japanese investors and overseas participants seeking exposure to Japan’s stock market.