SBI taps Ondo to tokenize Japanese equities using JPYSC
SBI Holdings is partnering with Ondo Finance to bring Japanese equities onchain, signaling a major institutional push to integrate the country's capital markets with global tokenized finance infrastructure.
SBI Holdings and Ondo Finance announced a partnership on Thursday to tokenize Japanese equities, marking a significant step in bridging traditional capital markets with digital asset infrastructure. The agreement utilizes Ondo Global Markets to handle the tokenization process while relying on SBI's JPYSC stablecoin for all settlement and collateral requirements. SBI will also distribute Ondo's tokenized products across its extensive domestic financial network.
This collaboration connects Japan's capital markets directly with the global tokenized economy. For institutional investors, the use of a trust bank-backed stablecoin for settlement addresses a major operational friction point in digital asset trading.
Tokenized equities are a growing but still secondary segment within the broader digital asset space. The market capitalization for tokenized stocks is approaching $13 billion, which represents roughly 15% of the total tokenized asset market. Asset-backed credit and U.S. Treasurys currently remain the largest categories in the sector.
For SBI, the Ondo deal is the most recent addition to a sweeping, capital-intensive strategy to build a comprehensive onchain finance ecosystem. The firm recently launched JPYSC as Japan's first trust bank-backed yen stablecoin, immediately following it with a dedicated lending product for the token.
The financial conglomerate has aggressively backed complementary market infrastructure over the past month. SBI acted as the sole investor in Gauntlet's $125 million Series C round and EDX Market's $75 million Series C round. In June, the firm expanded its exchange capabilities by acquiring Japanese crypto exchange Bitbank for nearly $289 million.
Furthermore, SBI has partnered with the Solana Foundation to construct a Japan-based onchain financial market. By combining exchange ownership, stablecoin issuance, risk management backing, and now tokenized equities, SBI is assembling a vertically integrated digital asset pipeline.
"Japan is one of the most sophisticated capital markets in the world, and SBI sits at the center of it," Ondo Finance CEO Ian De Bode said. SBI CEO Yoshitaka Kitao characterized Ondo as a leader in tokenized real-world assets and tokenized equities, noting the firm will be a key strategic partner as SBI expands its global digital asset ecosystem.
