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Ondo Finance Partners With SBI Group to Tokenize Japanese Equities

Tokyo skyline at dusk with holographic stock tokens and a yen symbol, illustrating Japanese equities tokenization.

Ondo Finance, a platform specializing in the tokenization of real-world assets (RWAs), has entered into a strategic partnership with Japan’s SBI Group to bring Japanese financial assets on-chain. According to an announcement on the Ondo Finance official blog, the collaboration focuses on the tokenization of Japanese equities and the distribution of these products through SBI’s financial services ecosystem.

The agreement outlines a framework where Ondo Global Markets (BVI) Limited will handle the tokenization of the assets, while SBI Group—a financial conglomerate with over $238 billion in assets—will manage distribution across its platforms.

A critical technical component of the partnership is the use of JPYSC, SBI’s yen-denominated stablecoin, for settlement and collateral. JPYSC is regulated under Japanese law and backed by a trust bank, providing an institutional-grade settlement layer that aligns with the local currency of the underlying assets.

Integration with the Japanese Market

The partnership seeks to bridge the gap between traditional Japanese capital markets and on-chain finance. By utilizing a yen-settled ecosystem, the initiative aims to reduce foreign exchange friction for local institutional investors who have historically faced barriers when accessing tokenized securities denominated in other currencies.

The collaboration includes four primary components:

  • Tokenization of Japanese financial assets by Ondo.
  • Distribution of these tokenized products through SBI Group’s existing customer channels.
  • Joint marketing efforts to promote digital asset adoption.
  • Exploration of further distribution through additional strategic partners.

Ondo CEO Ian De Bode noted that the collaboration creates a path to connect Japan with the global tokenized economy by leveraging SBI’s central position in the Japanese market. SBI CEO Yoshitaka Kitao described Ondo as a “key strategic partner” in forming a global corridor for digital assets.

Current Status and Scope

While the partnership establishes a clear path to market, the companies have not yet specified which particular Japanese equities will be tokenized first. The exact regulatory structure for non-Japanese investors wishing to access these assets also remains to be detailed. The language of the announcement suggests a move toward actual product launches within the SBI Group ecosystem rather than limited pilot programs.

This expansion into Japanese equities complements Ondo’s existing portfolio, which has focused primarily on tokenizing U.S. Treasuries and fixed-income products. For SBI Group, the deal follows previous efforts to build tokenized capital markets infrastructure through partnerships with other blockchain-focused entities such as DigiFT and Startale.