Osaka Digital Exchange (ODX) revealed that its Proprietary Trading System (PTS) “START” for security tokens will begin operations by Dec. 25, according to a Nov. 20 statement.
A security token is essentially a digital form of traditional securities. These tokens represent fractions of real-value assets, such as equity, a company, real estate, etc.
ODX’s offering stems from Japan’s Financial Service Agency (FSA) approval of its securities token proprietary trading system on Nov. 16. According to the firm, its trading system will bring more liquidity and funding opportunities to securities token operations within the region.
ODX was established in 2021 by SBI Holdings and Sumitomo Mitsui Financial Group (SMFG). Its current move aligns with its vision to create a digital stock exchange to compete against the Tokyo Stock Exchange.
Ichigo to be ODX’s START first client.
Ichigo is set to become one of the early customers of ODX’s START platform, according to a Nov. 20 statement.
The real estate company, which had previously issued two security tokens, will issue a new token to open real estate investment opportunities for individuals.
“This ST plans to invest in six highly convenient rental residential properties with excellent access to the city center, and is expected to be the largest issue price ever for an Ichigo Group ST,” part of the statement reads.
Bloomberg reported that Ichigo will sell about $20 million worth of securities backed by property investments, and trading will start on Dec. 25.
Meanwhile, the real estate-backed security assets will be released on Progmat, a Japan-regulated digital asset platform.
Progmat, established in 2022 by banking giant Mitsubishi UFJ Financial Group (MUFG) in collaboration with other Japanese banks, integrates blockchain technology with financial expertise to manage digital assets within the Asian country’s regulatory framework.
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