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SBI Holdings and SMFG: Opening of digital stock exchange in 2022

The planned digital exchange is the first in Japan to enable trading in digital securities using blockchain technology.

The Japanese financial group SBI Holdings is developing a digital exchange in cooperation with the Sumitomo Mitsui Financial Group, or SMFG for short

According to a report by Nikke on Thursday, the new digital stock exchange will be the first Japanese exchange to enable trading in digital stocks using blockchain technology .

The companies want to open the Osaka stock exchange in spring 2020. The platform is expected to begin settlement of digital securities in 2023. In order to be able to launch the exchange, SBI and SMFG want to found an operator. This is then called Osaka Digital Exchange, or for short: ODX. SBI will hold a 60 percent stake in ODX. According to the report, the share of SMFG then amounts to 40 percent.

The new exchange will use its own trading system.

This is an electronic trading venue operated by an investment firm to enable trading outside of a traditional exchange

The new digital exchange will compete with the Tokyo Stock Exchange. This is the third largest exchange in the world. As part of this cooperation, an alternative to the TSE is to be offered after the exchange suffered a massive failure in September 2020 due to a system malfunction.

SBI and SMFG aren’t the only companies working on a digital stock exchange in Japan. In April 2020, Tokai Tokyo Financial Holdings announced plans to develop a digital exchange in partnership with the blockchain startup Hash Dash.

SBI and SMFG already have an ongoing partnership in which digital banking services are offered via smartphone.

SBI is known for its positive stance on crypto and blockchain . The company is also positive about Ripple , although Ripple is currently facing a lawsuit for alleged violations of securities laws in the United States .