#Japan #Tokyo #Digital Currency #SBI Securities #BOOSTRY

Introduction

SBI Securities, along with major financial institutions including Daiwa Securities, SBI Shinsei Bank, BOOSTRY, Osaka Digital Exchange (ODX), and Decurre DCP, has completed a significant milestone in the Japanese fintech landscape by validating Japan's first tokenized deposit payment system. This project is aimed at developing a new payment scheme to facilitate the secondary market for security tokens (ST).

Background

Since the issuance of the first domestic digital security in 2020, the ST market in Japan has been expanding rapidly, witnessing diversification in product offerings and an increase in participating financial institutions. However, a critical challenge has persisted: while ST transfers on the blockchain can occur almost instantaneously, the actual payment process has relied heavily on traditional bank transfers, exposing the industry to settlement risks and administrative burdens. To ensure sustained growth of the ST market, resolving these issues through the standardization and practical application of digital currency for Delivery Versus Payment (DVP) settlement methods has become paramount.

Project Overview

The collaborative project initiated by SBI Securities, Daiwa Securities, BOOSTRY, and Decurre DCP utilized the tokenized deposit known as DCJPY for DVP settlement in security token transactions. The successful implementation of this new payment scheme marks a significant step forward for the ST secondary market.

Steps Involved

1. Preparation for Transfer: The selling brokerage firm prepares the ST for provisional transfer.
2. Settlement Information Coordination: Relevant systems share settlement details.
3. DCJPY Issuance Request: The buying brokerage requests the issue of DCJPY by transferring the required amount from their deposit account to a dedicated account.
4. Transfer Instruction: The buying brokerage gives instructions to transfer DCJPY to the selling brokerage.
5. Verification: Decurre DCP verifies the settlement information.
6. Execution of Transfer: At the time of DCJPY transfer, ST transfer is executed as well.
7. DCJPY Retirement Request: The selling brokerage requests the retirement of DCJPY, moving the funds from the dedicated account back to their deposit account.

These procedural steps collectively illustrate how digital currency can streamline the transaction process and reduce risks.

Tokenized Deposits and Their Benefits

The DCJPY utilized in this project is tied to deposits at SBI Shinsei Bank, demonstrating that tokenized deposits have stability in value and adhere to standard deposit characteristics such as accounting systems. This makes them a promising option for security token settlements.

Results of the Project

In March 2026, a simulation was conducted to validate the escrow-style DVP settlement using digital securities issued by Decurre DCP and the DCJPY managed by SBI Shinsei Bank. The transactions included sales of digital bonds from Daiwa Securities to SBI Securities and further transfers between the brokerages, confirming the operational viability of ST settlements combined with digital currency.

Challenges Towards Commercialization

Despite the successful validation, key challenges remain. These include enhancing automation in the processing of commands and data exchange between ibet for Fin and the DCJPY network, along with improving user interfaces and managing integration with existing systems and market infrastructure.

Future Directions

Moving forward, the involved entities aim to implement a model that focuses on DVP transactions and fund settlements between brokerage firms with a limited group of participants. Through continued collaboration among stakeholders, necessary operational rules, system linkages, and contractual roles will be carefully structured, paving the way for a more expansive and standardized payment foundation.

Statements from Participants

• - SBI Securities: Their success in utilizing digital currency in ST transactions contributes to the enhancement of transaction reliability.
• - Daiwa Securities: Emphasized the necessity of creating a secure payment infrastructure to support the growth of the ST market.
• - SBI Shinsei Bank: Confirmed the utility of DCJPY within the scope of DVP settlements and expressed commitment to advancing next-generation financial services.
• - BOOSTRY: Highlighted the important implications of their participation and the project's contribution to establishing standards for DVP settlements.
• - ODX: Recognized the potential to enhance trust in market transactions through the introduction of DVP settlements.
• - Decurre DCP: Noted the achievement of a significant milestone towards industry development and vowed to collaborate on practical implementation efforts.

In conclusion, this groundbreaking project marks a pivotal advancement in the integration of digital currencies into Japan's security token framework, setting the stage for a more efficient, reliable, and innovative financial environment.