Nomura and Daiwa Securities are to each take 5% stakes in the Osaka Digital Exchange (ODX), which is creating a marketplace for security tokens. In January, initial plans for the ODX were revealed with SBI holding 60% and SMBC the balance. However, in today’s announcement, SBI will have a 70% stake with SMBC at 20%.
So far, the company is capitalized at four billion yen ($35 million).
ODX will start trading stocks in the spring of 2022, with security token offerings (STOs) to follow. It envisions the tokenized securities including those backed by real estate and for project finance. Blockchain will act as the registry for all transactions.
Last week MUFG unveiled work from the Security Token Research Consortium in which MUFG’s blockchain platform Progmat would be used to hold the securities records, and ODX would function as the marketplace.
From a legal perspective, the ODX is not a stock exchange but a Proprietary Trading System (PTS), which has some similarities with U.S. Alternative Trading Systems (ATS).
Another major digital asset exchange is Switzerland’s SIX Digital Exchange (SDX) which recently received approval from the FINMA regulator.
In December 2020, SDX, SBI Group and SBI Digital Asset Holdings announced plans for a digital asset exchange in Singapore to be launched next year.