SBI partners Ondo to tokenize Japanese securities
Stocks
Ondo Finance has entered a strategic partnership with Japan's SBI Group to tokenize Japanese equities and integrate the JPYSC stablecoin, issued by SBI Shinsei Trust Bank. This collaboration aims to distribute Ondo’s tokenized stock products through SBI Group’s extensive brokerage network, including SBI Securities. Ondo Global Markets, which currently manages over $1 billion in tokenized stock issuance, will facilitate these offerings as structured products rather than direct equity ownership. These tokens function as loan notes backed one-to-one by underlying stocks held in custody by Alpaca, with security oversight provided by Ankura Trust. While the arrangement offers DeFi participants increased convenience, the tokens do not grant holders direct ownership rights and are restricted to non-U.S. investors. This move represents a significant expansion for Ondo, following its existing European collaboration with Deutsche Börse’s Clearstream and the 360X venue. By leveraging SBI’s infrastructure, the partnership highlights the growing institutional appetite for bridging traditional Japanese financial markets with blockchain-based distribution models.
Key points
- ▸Ondo Finance partners with SBI Group to tokenize Japanese equities and utilize JPYSC stablecoin.
- ▸Ondo Global Markets manages over $1 billion in tokenized stock issuance for non-U.S. investors.
- ▸Tokenized products are structured as loan notes backed by stocks held at Alpaca.
- ▸Distribution will occur through SBI Group’s brokerage network, including SBI Securities.
Background
Ondo Finance is a protocol specializing in the tokenization of real-world assets, primarily focusing on U.S. Treasuries and structured financial products. It operates by creating blockchain-based tokens that track the performance of underlying assets held in regulated custody, allowing DeFi users to gain exposure to traditional financial instruments.
Relevance
8.5/10