SBI Holdings and SMFG To Launch Digital Stock Exchange In 2022


Japanese finance giaSBI Holdings is building a digital stock exchange in collaboration with Sumitomo Mitsui Financial Group, or SMFG.

According to a Jan. 28 Nikkei report, the new digital securities exchange is expected to be the first Japanese exchange to trade digital stocks using blockchain technology.

The company is reportedly planning to launch an exchange in Osaka in the spring of 2022, while the platform is expected to start handling digital securities in 2023. To launch the exchange, SBI and SMFG will form an operator, the Osaka Digital Exchange, or ODX. SBI will own a 60% stake in ODX, while SMFG will own 40%, the report said.

The new exchange will use proprietary trading systems, electronic trading platforms run by securities firms to allow trading outside of traditional public exchanges.

The new digital stock exchange will compete with the Tokyo Stock Exchange – reportedly the third largest stock exchange in the world. This new initiative specifically aims to provide an alternative to the TSE after the exchange experienced a massive blackout caused by a system glitch in September 2022.

SBI and SMFG are not the only companies working on digital securities exchanges in Japan. In April 2022, Tokai Tokyo Financial Holdings announced plans to develop a digital stock exchange in partnership with blockchain startup Hash Dash.

SBI and SMFG previously partnered to offer digital banking services via smartphones.

SBI is known for its positive stance on crypto and blockchain, as well as Ripple, a fintech company that is now facing a federal lawsuit in the United States for alleged breaches of securities laws.

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