By Shelly Melancon (Switzerland)
Tokyo Stock Exchange To Get A blockchain-based Rival In 2022
- Tokyo Stock Exchange faces the threat of competition from a blockchain-based digital stock exchange, ODX.
- The proposed exchange is from a partnership between SBI and SMFG and is set to roll out in the spring of 2020
- Upon successful launch of the exchange, it is expected to be Japan’s first exchange to trade digital securities built on blockchain.
Two Japanese-based groups, SBI Holdings, and SMFG have partnered together to launch a blockchain-based exchange in Japan. This is considered by many as an excellent competition for the Tokyo stock exchange, one of the largest traditional financial institutions, ranked as the third-largest stock exchange. The Japanese-based companies’ exchange launch is scheduled for 2022 and is expected to roll out in Osaka.
The news for the launch came up after the Tokyo Stock Exchange (TSE) faced a backlash for a hardware glitch in September. Nikkei’s report says that this exchange is expected to be Japan’s first digital stock trading firm.
As part of the group’s preparation for the launch, they are set to create an Osaka Digital Exchange (ODX), which will serve the exchange’s purpose, with SBI owning a larger portion of the company (60%) and SMFG owning the rest.
Also read:The proposed exchange will use its trading system and e-trading platform to allow investors to trade outside of a traditional public exchange. A significant way the partner groups plan to go about this is to create a way to take orders outside the TSE’s regular operating hours and benefit from reduced fees.
The exchange will start working with digital securities starting 2023. SBI is optimistic that the digital security technology will aid the successful operation of the exchange. It will also give investors access to non-traditional assets, such as distribution rights to arts, becoming a significant market for such assets.
To get the exchange working, the brokerage arm of SMFG will route customers’ orders to the new exchange. This is also done to prevent the occurrence of conflicting interests. With this new development, traditional stock operators are now becoming more aware of blockchain’s disrupting force. However, the two groups are not the only ones working on a digital securities exchange in Japan. Tokai Tokyo also revealed their similar plan in April 2020.
This initiative is foreign to the world as well. In 2017, the Australian Securities Exchange (ASX) also announced blockchain technology’s implementation in its system. However, this move was suspended by ASX in October due to higher requirements than it had anticipated. Regardless, the system launch has been shifted to April 2023.
Crypto enthusiasts and investors are keenly watching out for this new development and are eager to see how it turns out. However, they are not only groups watching; the traditional financial system has its eye on this latest development. Until then, no one can be sure of what to expect next; we can only anticipate.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.