Japan is studying on-chain trading of stocks and other securities. Its account rules pose a hurdle for the pooled account used in a U.S. tokenization model.
- Japan's FSA is exploring blockchain trading for securities but faces legal hurdles with its current book-entry system, which complicates the use of digital omnibus accounts common in U.S. tokenization models.
- The core issue lies in Japanese law limiting how securities depositories can hold accounts, contrasting with the U.S. DTCC model where DTC acts as the registered holder for tokenized securities.
- The FSA is also considering broader implications like ledger maintenance, investor protection, and integrating blockchain transfers with existing records, with an interim review expected in early 2027.
Topics: Jurisdictions, Legal regulatory, Blockchain usage, Regulatory sandboxes pilots, Securities law classification, Ethereum evm l 1 s
Tags: #japanfsa #tokenization #blockchaintrading #omnibusaccount #bookentrysystem #dtcc #securitiesdepository #onchainfinance #stablecoins #defi
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