SBI Group has partnered with Ondo Finance to tokenize Japanese stocks and use its yen-backed JPYSC stablecoin for settlement and collateral.
Summary
- SBI has partnered with Ondo to bring tokenized Japanese stocks into its financial ecosystem.
- JPYSC will support settlement and collateral for Ondo’s tokenized financial products.
- The deal follows SBI’s launch of a tokenized Japanese equity fund on Solana.
According to the companies, the agreement will bring Ondo’s tokenized financial products into SBI’s financial ecosystem while connecting Japanese assets with international markets for tokenized securities. The partnership will also use SBI’s customer network to offer the products to millions of investors.
Under the agreement, Ondo Global Markets (BVI) Limited will issue tokenized financial products linked to Japan. SBI, a long-time Ripple partner, will distribute the products through its financial platforms and introduce them to existing customers.
Both companies will also conduct joint marketing and explore distribution through strategic partners. SBI and Ondo did not disclose a launch date, the first assets planned for tokenization, or the regulatory structure that will govern investor access.
JPYSC will support settlement and collateral
As part of the partnership, SBI plans to integrate JPYSC as a settlement and collateral asset for Ondo’s tokenized products. The stablecoin is backed by the Japanese yen and is designed to support transactions within SBI’s digital asset services.
Using JPYSC could allow investors to settle purchases of tokenized Japanese assets with a yen-denominated digital currency. The companies also plan to explore its use as collateral, although they have not provided details about eligible products or collateral requirements.
For Ondo, the agreement provides access to SBI’s position in Japan’s banking, brokerage, asset management, and digital asset sectors. SBI, in turn, gains another route for offering blockchain-based securities through an issuer focused on tokenized real-world assets.
Commenting on the partnership, Ondo Finance CEO Ian De Bode described Japan as an important market for the sector.
“Japan is one of the most sophisticated capital markets in the world, and SBI sits at the center of it. This collaboration creates a path to bring Japanese assets onchain and to connect Japan with the global tokenized economy.”
SBI Chairman, President and CEO Yoshitaka Kitao described Ondo as a potential long-term partner as the Japanese financial group develops links between domestic and overseas digital asset markets.
“We believe Ondo will be a key strategic partner as SBI Group forms a global corridor for digital assets, and we look forward to rapidly advancing a wide range of initiatives together.”
SBI is building an onchain equities pipeline
The Ondo partnership follows SBI Global Asset Management’s launch of a tokenized Japanese equity fund on Solana with DigiFT, a regulated real-world asset exchange.
As reported by crypto.news, SBI Global Asset Management launched the SBI Japan High Dividend Equity Strategy Token, known as the JX token, on July 15. The token gives accredited and institutional investors blockchain-based access to a high-dividend Japanese equity strategy managed by SBI Asset Management Co.
For DigiFT, the JX token is its first onchain tokenization of a Japanese equity fund. SBI described the product as the world’s first tokenized Japanese equity fund, adding another channel for professional investors to access the country’s stock market through blockchain infrastructure.
While the JX token focuses on a managed equity strategy for qualified investors, the Ondo agreement covers tokenized financial products, distribution through SBI’s ecosystem, and JPYSC integration. Together, the two initiatives show SBI is testing separate routes for bringing Japanese securities and yen-based settlement onto public blockchain networks.