The Day Stocks Transform from 'Securities' to 'Tokens'

Key Points of This Article

Differences in Regulatory Frameworks between Japan and the US
By 2026, asset tokenization has become fully operational. While the US is expanding through market-driven initiatives, Japan has adopted a regulatory-first approach, clarifying rights definitions under the Financial Instruments and Exchange Act to prevent confusion. Both countries are advancing the digitalization of capital markets with different strategies.

Challenges and Risks of Stock Tokens
In the US, a proliferation of diverse stock token types raises concerns about market fragmentation due to ownership deficiencies and price discrepancies. Despite increased convenience, there is an urgent need for clear governance and regulatory restructuring from the perspectives of counterparty risk and investor protection.

The Future of a Tokenized Economy
Currently, stablecoins dominate the RWA market, but the tokenization of stocks and other assets is rapidly expanding. As Japan, the US, and Europe compete for leadership with unique regulatory approaches, the aim is to resolve existing financial issues and establish tokenization as a standard financial infrastructure.

Asset "tokenization" is advancing. However, Japan and the US seem to have different perspectives. Japan is solidifying its framework through regulation, while the US market is taking the lead. With the SEC's recent assertion that "tokenized securities are still securities," the contours of a 24/7 capital market are beginning to emerge. This article deciphers the forefront of these developments through the lens of both countries' regulations and practices.

2026: Tokenization Market Takes Off, Yet Japan Remains Unaware

An on-chain market where ownership of real-world assets like real estate, bonds, stocks, and art is recorded on the blockchain and tokenized for trading. Despite being anticipated since the technology's inception, progress has been stalled by delays in legal frameworks, limiting involvement to development companies and a few enthusiasts.

However, 2026 marks a significant shift.

The focus has shifted from the potential of technology to the reality of regulation. The Web3.0 industry has moved beyond proof of concept, with securing sustainable trading volumes as the new goal.

In Japan, revised bills have been submitted to the Diet, while in the US, the SEC has clarified the principle that "securities are securities." This is no longer a time for dreaming, but for reporting on the establishment of rules.

Yet, Japanese media have failed to recognize the advanced state of legal and market infrastructure for tokenized securities, despite being at the forefront among major countries. To bridge the gap between overseas recognition and domestic awareness, this feature scrutinizes the current situation.

Japan's crypto assets are being reclassified from separate taxation to fall under the Financial Instruments and Exchange Act. If the tax rate is reduced from 55% to around 20%, dormant capital may be activated, and companies might see Japan as an attractive issuance hub. However, issues such as a 1-3% price discrepancy for the same asset across different chains highlight market deficiencies. A calm assessment of the current state is crucial now.