[NEWS] Osaka Digital Exchange to start security token trading on "START" next month

Osaka Digital Exchange (ODX) announced on the 20th the planned start date for trading on START, a PTS (private trading system) for security token (ST) trading.

According to the announcement, trading is scheduled to start on December 25th. The stocks to be handled will be approved after review and will be announced on the website from time to time.

The first project on STRAT will be "Ichigo Residence Token - Shibakoen, Higashi-Shinjuku, Toritsu Daigaku, Monzen-Nakacho, Takaido, Shinkoiwa - (digital name transfer method)," which Ichigo is discussing with Mitsubishi UFJ Trust and Banking Corporation and SBI Securities for public offering and operation.

This security token will utilize "Progmat," a digital asset issuance and management platform developed by Progmat, Inc.

Osaka Digital Exchange just announced on the 16th that it has obtained change registration and change approval from the Financial Services Agency in preparation for the opening of the PTS.

Although a private trading system for listed securities has already been established, the name of the security token PTS trading market will be "START." The first secondary market for security tokens in Japan will be launched, and the name was chosen in the hope that increased liquidity will create opportunities for fundraising and develop the security token market.

Osaka Digital Exchange aims to create a "competitive trading market"

Security tokens have attracted a lot of attention in recent years because they can be made into smaller units while keeping issuance and management costs lower than general securities.

Osaka Digital Exchange aims to create a "competitive trading market." This will not be a one-to-one transaction between a seller and a buyer, but rather a format in which multiple sellers and buyers gather at the exchange in a many-to-many relationship. In other words, it will be the same as a general stock investment exchange.

Another type of market is the "RFQ market" (Request for Quotation market). This is a system for large investors such as institutional investors who request the securities they wish to buy and sell from multiple trading participants and trade them individually. Currently, the Tokyo Stock Exchange is operating the RFQ platform "CONNEQTOR", which was released in 2021.

Transactions conducted daily at the Tokyo Stock Exchange and other exchanges are cleared by the Japan Securities Clearing Corporation, and the Japan Securities Complementary Transfer Corporation is responsible for settlement, ensuring the transparency of transactions. For private exchanges to gain the trust of investors and other market participants, they need to demonstrate greater transparency than existing exchanges.

What is Osaka Digital Exchange?

Osaka Digital Exchange was established in 2021 with investments from SBI Holdings and Sumitomo Mitsui Financial Group. SBI invested 60% and Sumitomo Mitsui FG invested 40%. Until now, it has been explained that it will begin trading security tokens in 2023.

At a study group held by the Financial Services Agency in June this year, Akiyoshi Maruyama, Managing Director of Osaka Digital Exchange, explained the path to ensuring transparency in emerging markets in two stages: the realistic "Phase 1" and the ideal "Phase 2".

Osaka Digital Exchange's Phase 2 goal is to build a system called "Real Time Gross Settlement (RTGS)" that instantly exchanges security tokens between participants on a blockchain platform.

Reference:Announcement 1,Announcement 2
Image: Shutterstock

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