Security tokens inside the FIEA (since 2020)
The May 1, 2020 FIEA amendment introduced the concepts of electronically recorded transferable rights. Japanese security tokens sit inside the existing securities law rather than a new regime.
JAPAN TOKENIZED SECURITIES MARKET MAP
Japan Digital Securities Market Map
A primary-source reference that separates Japanese digital securities into wrapper, venue, settlement and law — rather than treating them as one thing.
金商法 2020/05/01 / ELECTRONICALLY RECORDED RIGHTSODX START / 2023/12AMENDED PAYMENT SERVICES ACT / IN FORCE 2026/06/01MOVE UNDER FIEA / ENACTED 2026/07/15 · NOT YET IN FORCEDvP PILOT / PHASE 1 DONE 2026/07/3120% TAX RATE / EXPECTED 2028金商法 2020/05/01 / ELECTRONICALLY RECORDED RIGHTSODX START / 2023/12AMENDED PAYMENT SERVICES ACT / IN FORCE 2026/06/01MOVE UNDER FIEA / ENACTED 2026/07/15 · NOT YET IN FORCEDvP PILOT / PHASE 1 DONE 2026/07/3120% TAX RATE / EXPECTED 2028
01 · STATUS
Status points to know first
“Approved,” “rule effective,” and “live in production” are different states. This site keeps them separate.
ODX “START” — Japan’s first PTS for security tokens
Trading started in December 2023. It is a proprietary trading system (PTS), not an exchange; orders go through participating brokerages. For 2026 ODX has stated it is working to widen the asset types beyond real estate.
On-chain settlement is at the pilot stage
Several pilots are running for DvP settlement using tokenised deposits (DCJPY) or stablecoins. A first-stage pilot completed on July 31, 2026, but none of these are commercial services yet.
Act moving crypto into the FIEA (enacted, not in force)
Submitted to the Diet on April 10, 2026 and enacted on July 15, 2026. It moves crypto-asset regulation from the Payment Services Act into the FIEA. It is not yet in force.
Tax: moving to 20% separate taxation (not yet applied)
Certain crypto assets are to move to 20% separate self-assessed taxation with loss carry-forward. Application starts the January after the law takes effect, expected 2028.
02 · OWNERSHIP
What exactly do you own?
Using the SEC’s January 2026 taxonomy as the anchor, classification follows legal structure and authoritative ownership records—not the appearance of the token.
Trust beneficiary interest (the most common wrapper in Japan)
In plain termsProperty is placed in a trust and the right to receive its returns is tokenised. It is not a share.
Classified under the FIEA as an electronically recorded transferable right. Japan’s security-token market grew mainly around this real-estate-backed structure.
RightsA right to distributions from the trust assets — not shareholder voting rights.
Authoritative recordRecords held by the trustee and the issuance platform (Progmat, BOOSTRY, etc.).
Tokenised corporate bonds
In plain termsA right to interest from lending to a company. You do not become a shareholder.
A debt claim on the issuer, tokenised. ODX has listed tokenised corporate bonds among the products it is considering for 2026.
RightsRight to interest and principal.
Authoritative recordPlatform records within Japan's book-entry framework.
Tokenisation of listed shares themselves
In plain termsUnlike the U.S., we have not identified a publicly announced case of tokenising listed Japanese shares themselves.
Japanese shares are held in the central book-entry system. We have not identified a framework replacing those records with tokens. This is the widest gap versus the U.S.
RightsNot applicable — no case identified
Authoritative recordThe central depository’s book entry remains authoritative.
Settlement assets (tokenised deposits, stablecoins)
In plain termsNot the security token itself — the money leg used to pay for it.
Used in DvP settlement where the token and the cash move together. A July 2026 pilot used a trust-type stablecoin specification on Avalanche L1.
RightsNot a security — a means of payment.
Authoritative recordIssuer records plus the on-chain ledger.
03 · TRADING ROUTES
Where is it traded and settled?
Ownership model and trading venue are separate axes. The rules and settlement path differ by route.
The only publicly known venue where Japanese security tokens actually trade in the secondary market. It is not an exchange.
- Trading began in December 2023.
- Orders are placed through participating brokerages, not by investors directly.
- So far mainly real-estate-backed tokens.
- For 2026 ODX has stated it is working to widen the asset types.
Several pilots are testing delivery-versus-payment settlement using tokenised deposits or stablecoins.
- December 26, 2025: collaboration began on a live issuance test settling security tokens with tokenised deposits.
- July 31, 2026: Kenedix, Progmat and Datachain completed the first stage, testing direct settlement without a brokerage in between.
- The pilot used a trust-type stablecoin specification issued on Avalanche L1.
- A decision on commercialisation is planned within 2026. No service has launched.
Japanese security tokens have generally been available only to residents. There is now work to remove that constraint.
- SBI Securities and Daiwa Securities, with BOOSTRY, are reported to have tested a direct link with Singapore.
- It reportedly connects to a public chain, with legal and tax treatment worked through.
- Trading could start as early as 2027 according to reporting. No start has been confirmed.
- This is based on reporting and does not indicate regulatory approval.
04 · REALITY CHECK
Tokenization does not make everything 24/7 and instant
24/7 trading, atomic settlement, self-custody and fractionalization do not apply uniformly to every model.
Order of law and implementation
Traditional / currentIn the U.S. the rule came first; implementation follows.
What tokenization can enableIn Japan the pilots moved first, while the amended law and tax treatment are not yet in force.
Important caveat: The reversed order is the key point when comparing the two markets.
What is being tokenised
Traditional / currentIn the U.S., the listed share itself, under the same CUSIP.
What tokenization can enableIn Japan, mainly trust beneficiary interests backed by real estate. We have not identified a case of tokenising listed shares themselves.
Important caveat: The same phrase covers different underlying instruments.
Where it trades
Traditional / currentIn the U.S.: national exchanges, ATSs and the exempt TSV route.
What tokenization can enableIn Japan: a PTS (ODX “START”). There is no exchange trading of security tokens.
Important caveat: A PTS is not an exchange, and participation is limited.
Who can buy
Traditional / currentIn the U.S. there is a clear split between products offered to residents and those not.
What tokenization can enableJapanese security tokens have generally been for residents. Cross-border access is under study.
Important caveat: Reported as possibly starting in 2027, but not decided.
05 · ECOSYSTEM
Ecosystem map
This is not a regulator-approved company list. It maps roles that firms have publicly disclosed or filed, with sources.
Osaka Digital Exchange (ODX)
Operates START, Japan’s first PTS for security tokens. Part of the SBI group.
Progmat
A digital-asset issuance and management platform originating from MUFG Trust. Widely adopted by financial institutions.
BOOSTRY
A platform company founded by Nomura Holdings and NRI, operating ibet for Fin. SBI Holdings is also an investor.
Kenedix / KDX ST Partners
A leading issuer of real-estate security tokens. Completed the first stage of a stablecoin settlement pilot in July 2026.
Datachain
Provides a cross-chain DvP settlement solution jointly with Progmat.
DeCurret DCP
Operates the DCJPY tokenised-deposit platform, being tested for security-token settlement.
SBI Securities / Daiwa Securities
Working with BOOSTRY on cross-border access for overseas investors; reported target of 2027.
Mitsui & Co. Digital Asset Management
One of the main arrangers of asset-backed security tokens.
06 · LICENCES
Which registration or licence allows this
Registration, effectiveness of a filing, approval and exemption are different concepts. “The SEC is involved” does not mean the same thing in each case.
PTS
Proprietary Trading System (PTS)
Who holds itOsaka Digital Exchange (ODX)
What it allowsA venue outside the exchanges where securities can trade. Japanese security tokens trade here.
How it is obtainedRequires authorisation under the FIEA.
CautionIt is not an exchange. Participation is limited and investors do not place orders directly.
第一種
Type I Financial Instruments Business
Who holds itSecurities firms (SBI Securities, Daiwa Securities, etc.)
What it allowsDealing, offering and underwriting securities including security tokens.
How it is obtainedRegistration under the FIEA.
CautionSecurity tokens are distributed through these registered firms.
信託
Trust business (trustee)
Who holds itTrust banks (MUFG Trust and others)
What it allowsHolds assets such as real estate in trust and issues beneficiary interests — the base of Japan’s security tokens.
How it is obtainedLicensed under the Trust Business Act.
CautionA trust beneficiary interest is not a share and carries no shareholder voting rights.
基盤
Issuance and management platforms (technology providers)
Who holds itProgmat / BOOSTRY
What it allowsProvide the platforms that record issuance, holdings and transfers on a blockchain.
How it is obtainedThese are technology providers to registered firms rather than registered intermediaries themselves.
CautionThis does not mean the platform itself is authorised by the regulator.
決済
Settlement instruments (tokenised deposits, e-payment instruments)
Who holds itDeCurret DCP (DCJPY) and trust-type stablecoin issuers
What it allowsUsed to pay for security tokens, enabling delivery-versus-payment settlement.
How it is obtainedUnder the amended Payment Services Act, in force from June 1, 2026.
CautionNot securities. Their use for settling security tokens is still at pilot stage.
06 · REGULATION
Regulatory and market-structure timeline
Statutes, SEC orders, SRO filings, no-action letters, staff views and company plans are not given the same legal weight.
Effective
FIEA amendment takes effect — the legal wrapper for security tokens
The concepts of electronically recorded transferable rights were introduced, placing security tokens inside existing securities regulation.
Live / available
ODX “START” begins trading
Secondary trading began on Japan’s first PTS for security tokens, with orders routed through participating brokerages.
Effective
Amended Payment Services Act enacted (in force June 1, 2026)
Rules for stablecoins and crypto intermediation. Promulgated June 13 and in force from June 1, 2026.
Proposed
Live test of settling security tokens with tokenised deposits
A collaboration began on what is described as Japan’s first such test using DCJPY.
Under development · approvals pending
ODX states it will widen the asset types
Beyond real-estate tokens, it says it is considering corporate-bond, PE-fund and movable-asset-fund tokens.
Proposed
Bill moving crypto into the FIEA submitted to the Diet
It moves crypto-asset regulation from the Payment Services Act into the FIEA and adds market-abuse and insider-trading rules.
Under development · approvals pending
SBI and Daiwa reported to be building cross-border access
Reported to have tested a direct link with Singapore with BOOSTRY, possibly starting in 2027. This is reporting, not regulatory approval.
Enacted, not in force
The Act is enacted (not yet in force)
It takes effect within 18 months of promulgation. Separately, certain crypto assets are to move to 20% separate taxation from the January after it takes effect, expected 2028.
Proposed
First-stage pilot completed: settlement without a brokerage in between
Kenedix, KDX ST Partners, Progmat and Datachain completed a test where the token and the stablecoin moved simultaneously, using a trust-type stablecoin specification on Avalanche L1. A commercialisation decision is planned within 2026.
07 · SOURCES
Primary-source library
SEC, DTCC/DTC, NYSE/ICE and Nasdaq are prioritized. Company materials are clearly identified as company sources.
Explanatory materials on the bill to partially amend the Financial Instruments and Exchange Act and the Payment Services Act
金融商品取引法及び資金決済に関する法律の一部を改正する法律案 説明資料FSA Japan · 2026-04 · Primary source
Working Group on the regulatory framework for crypto assets — meeting materials
暗号資産制度に関するワーキング・グループ 資料FSA Japan · 2025-11-07 · Primary source
START, a proprietary trading system for security tokens, begins trading
セキュリティトークン取引に係るPTS「START」の売買取引開始のお知らせOsaka Digital Exchange · 2023-12-25 · Primary source
ODX to step up its efforts in 2026 to grow the security token market
2026年 ODXはセキュリティトークン市場の拡大に向けてギア・アップします！Osaka Digital Exchange · 2026-01-14 · Primary source
Security Token Trading, START
Osaka Digital Exchange · Primary source
Pilot project launched for DvP settlement of secondary security token trades using a stablecoin
セキュリティトークンのセカンダリーマーケット取引におけるステーブルコインを活用したDvP決済に係る実証プロジェクト開始のお知らせOsaka Digital Exchange · Primary source
Collaboration begins on Japan’s first live issuance test settling security tokens with tokenised deposits
国内初のトークン化預金によるセキュリティトークン決済の実発行検証に関する協業開始についてDeCurret DCP · 2025-12-26 · Company source
Collaboration on a digital securities scheme using a public blockchain and a stablecoin — first phase of the staged pilot completed
パブリックブロックチェーン及びステーブルコインを活用した新たなデジタル証券スキームに関する協業について ― 商用化に向けた段階的実証の第一段階を完了 ―KDX ST Partners · 2026-07-31 · Company source
SBI and Daiwa Securities use digital securities to draw investment into Japan, enabling lower-cost settlement
SBIと大和証券、デジタル証券で対日投資促す 低コストの決済可能にNikkei · 2026-07-07 · Company source
Progmat — digital asset infrastructure
Progmat デジタルアセット基盤Progmat · Company source
BOOSTRY ibet for Fin
BOOSTRY · Company source
08 · METHODOLOGY
How to read this map
First identify what the investor legally holds, then identify the trading route, and finally verify the authoritative source and operating status. The word “tokenized” alone does not determine shareholder rights, counterparty risk or settlement cycle.
1LEGAL HOLDING→2TRADING ROUTE→3AUTHORITATIVE SOURCE→4LIVE STATUS