SBI Holdings has reportedly partnered with Sumitomo Mitsui Financial Group (SMFG) to launch a digital stock exchange slated for spring 2022.

  • SBI and SMFG are expected to launch the platform in Osaka to compete against the Tokyo Stock Exchange (TSE), according to a Nikkei report Thursday.
  • The exchange is expected to be Japan's first such stock exchange, allowing investors to trade digital securities using blockchain technology.
  • In March, the companies will set up an operator called the Osaka Digital Exchange (ODX), with SBI to own 60% and SMFG 40%, per the report.
  • SBI and SMFG, which both have brokerage arms, will put in place a governance structure to prevent any conflict of interest.
  • The news comes after the TSE was criticized for a major hardware glitch in September caused the worst outage ever for the world's third-largest equity market.
  • The ODX is expected to start trading digital securities in 2023.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.