SBI to Tokenize Japanese Equities by 2026 via Blockchain Partnership

Japan’s SBI Holdings is set to tokenize domestic equities via blockchain technology, aiming for a 2026 rollout in partnership with Singapore-based Startail Group. The initiative seeks to reduce settlement times to seconds and nearly eliminate transaction costs, leveraging distributed ledger technology to create a more efficient and transparent equity trading system [1]. This development positions Japan as a key player in the growing global trend of tokenized financial assets, particularly in equities markets.

Under the proposed model, stocks, bonds, and ETFs will be represented as tokens on a blockchain platform, enabling faster cross-border transactions and bypassing traditional intermediaries such as clearinghouses and custodians. Unlike volatile cryptocurrencies, these tokenized securities will mirror the real-world price and yield of the underlying assets, ensuring stability while improving trading efficiency [1]. SBI’s leadership believes the project could significantly enhance access to Japanese equities for international investors, especially if tokenization lowers barriers such as minimum investment thresholds and complex settlement processes.

SBI Holdings, which operates a financial services network with over 50 million clients, is leveraging its existing customer base to accelerate adoption once the platform launches. The company’s chairman, Yoshitaka Kitao, is expected to outline further details at the WebX crypto conference in August, where he has described the project as a potential blueprint for future global trading infrastructure [1]. Although no formal roadmap has been disclosed yet, sources indicate that a late 2026 or early 2027 launch is under active discussion.

The initiative reflects broader interest in tokenized assets worldwide, with firms like Robinhood and Kraken recently rolling out similar offerings for U.S. equities. In Japan, progress on digital finance has been gradual, with the government recently approving the country’s first stablecoin. However, tokenized equities remain an emerging concept compared to other markets, and SBI’s move could help advance regulatory and institutional conversations around their adoption [1].

Regulatory clarity will be a critical factor in the success of the project. Japan’s financial authorities have been cautious in their approach to blockchain-based innovations, particularly concerning investor protection and market integrity. SBI will need to work closely with regulators to ensure compliance and build public confidence, particularly given the company’s past resistance to launching crypto-based ETFs and its mixed public stance on blockchain applications [2].

While the potential benefits—such as reduced counterparty risk, faster settlement, and enhanced liquidity—are significant, challenges remain. These include ensuring interoperability with existing financial infrastructure, addressing cybersecurity risks, and securing buy-in from institutional stakeholders. Widespread adoption will depend on the ability to integrate tokenized assets into traditional trading ecosystems without compromising market stability.

As the deadline of 2026 approaches, SBI’s project will be closely monitored by investors, regulators, and technology firms globally. If successful, Japan could become one of the first major markets to fully implement blockchain-based equity trading, setting a precedent for other countries considering similar reforms. The outcome may also influence the broader debate around the future of finance, particularly how traditional assets can be adapted to new digital paradigms.

Sources:

[1] This SBI Blockchain Bet Could Turn Japanese Stocks Into Tokens by 2026 (https://blockonomi.com/this-sbi-blockchain-bet-could-turn-japanese-stocks-into-tokens-by-2026/)

[2] Other News | CryptoDnes (https://cryptodnes.bg/en/news/others/)