- Japan is expected to have the first blockchain-based stock exchange by 2022
- The digitalized stock exchange will be possible thanks to a partnership between Japanese financial firms SBI Holdings and Sumitomo Mitsui Financial Group
- The platform is expected to launch in Osaka and will compete against the Tokyo Stock Exchange (TSE)
In a groundbreaking move, SBI Holdings has reportedly partnered with Sumitomo Mitsui Financial Group (SMFG) to launch the first blockchain-based stock exchange in Japan. The digitalized slated stock exchange is expected to go live in spring 2022.
The Partnership Between SBI Holdings and Sumitomo Mitsui
The report of the partnership between SBI Holdings and Sumitomo Mitsui was first announced on Thursday by Nikkei business daily, leaders in Asian business, politics, economy, and tech stories.
According to the news by March, the companies will begin to structure an operator called the Osaka Digital Exchange (ODX). The report explains that SBI is expected to own 60 percent of ODX’s shares while 40 percent will go to SMFG.
The Tokyo Stock Exchange (TSE) holds an almost monopolistic control over the stock transactions in Japan. In October 2020, stock trading in Japan was halted after TSE experienced a hardware failure all day, highlighting the need for an alternative platform in Japan
When ODX launches, the blockchain-based stock exchange will be a direct competitor of the TSE. In addition, the budding exchange aims to be a hub for the growing demand for transactions of digital securities in Japan.
On the Flipside
- Ripple Labs has responded to the SEC Lawsuit over its sale of the XRP tokens
- According to a Friday filing, Ripple Labs, the U.S. Securities and Exchange Commission (SEC) is ignoring that the XRP token has utility
- Since the SEC filed a lawsuit against Ripple Labs, the XRP has suffered immense price drops, with many exchanges delisting the crypto as a result
The Both Firms
SBI Holdings, also known as Strategic Business Innovator Group, is a financial services company group based in Tokyo, Japan. The fast-growing firm provides a variety of one-stop financial services over the Internet.
Sumitomo Mitsui Financial Group is one of the leading hedge fund managers in Japan. The company also provides commercial banking and a variety of other financial services for its investors.
Currently, both SBI Holdings and SMFG have operational brokerage arms. Part of the organization of ODX that will begin in March will put in place a governance structure to prevent any conflict of interest.
If all the schedules are met and ODX lunches in the spring of 2021, it will be Japan’s first digitized stock exchange. The digitalized exchange will allow investors to trade digital securities using blockchain technology.