[SBI Securities] Public Blockchain Utilization Demonstration Results Announced with an Eye on Cross-Border Distribution of Domestic STs

SBI Securities Co., Ltd. (President and CEO: Masato Takamura, hereinafter "SBI Securities"), Daiwa Securities Co., Ltd. (President and CEO: Akihiko Ogino, hereinafter "Daiwa Securities"), SBI Digital Markets Pte. Ltd. (Headquarters: Singapore, Acting CEO: CK Ong, hereinafter "SBI DM"), Penguin Securities Pte. Ltd. (Headquarters: Singapore, Co-founder and CEO: Kentaro Kawabe, hereinafter "Penguin Securities"), and BOOSTRY Inc. (President and CEO: Kazuma Hirai, hereinafter "BOOSTRY") have jointly promoted a demonstration project on the utilization of public blockchains in inter-dealer transactions, with an eye on the future cross-border distribution of domestically issued and managed security tokens (hereinafter "STs"). In this project, verification of system, legal, and operational aspects was conducted, assuming a configuration that utilizes the public blockchain "Ethereum" and the stablecoin "USDC" exclusively for ST transactions with overseas securities firms.

As a result, we confirmed the potential for a new settlement and transfer infrastructure in cross-border transactions, organized practical issues for financial institutions utilizing public blockchains, and gained important insights for future system and market development.

1. Background of the Project

While the domestic ST market is steadily expanding, its distribution and sales are basically confined within the framework of domestic existing infrastructure and systems, and there are still challenges in accessing overseas investors and improving the efficiency of cross-border payments. In this project, with a view to delivering Japan's diverse assets to overseas investors in the future, we verified the form of an international payment and distribution platform by utilizing public blockchains exclusively for cross-border inter-dealer transactions.

Diagram: Significance and Objectives of This Project

2. Main Points Confirmed in the Demonstration

In this demonstration, management for domestic investors was conducted on ibet for Fin*1, a consortium-type platform developed and operated by BOOSTRY, as before. For inter-dealer transactions with overseas securities firms, the target STs were mirrored onto the public blockchain, enabling DvP settlement*2 using the stablecoin USDC.

Diagram: Image Diagram of Blockchain Configuration in This Project

This confirmed that the interoperability and global connectivity of public blockchains can be leveraged while ensuring the stability of domestic rights. Furthermore, we organized issues crucial for financial institutions using public blockchains, such as gas fee*3 management, private key management, BCP/contingency plans, role sharing between Japanese and Singaporean financial institutions, security and control points, and related legal and tax issues. We then engaged in discussions with relevant authorities and self-regulatory organizations. Based on this, SBI Securities and Daiwa Securities conducted a risk assessment regarding the safety of the platform and reported it to a self-regulatory organization. After confirming the report with the organization, we received notification from the organization that there are no additional confirmation items regarding the use of public blockchains (Ethereum) for this project at this time.

3. Towards the Future

Based on the knowledge gained from this project, we will continue to consider institutional challenges in corporate bond-type STs and the potential for expansion to other assets such as real estate STs. In particular, organizing the systems and practices that support cross-border distribution, establishing operational rules among stakeholders, the form of ledger management and rights transfer, and the advancement of stablecoin settlement practices are themes that require ongoing discussion for future market expansion.

SBI Securities, Daiwa Securities, SBI DM, Penguin Securities, and BOOSTRY will continue to pursue practical considerations and challenges for the development of the digital securities market and its connection with global capital markets.

More specific details of the verification results can be viewed at the following URL:

Demonstration Report on the Utilization of Public Blockchains for Domestic STs

[https://docs.boostry.co.jp/pdf/ST_PublicBC_PoC_Japan_jp.pdf]

<About the Briefing Session>

A web briefing session is scheduled to explain the results of this demonstration.

Organizer: N.Avenue Inc. (NADA NEWS / formerly CoinDesk JAPAN)

Sponsor: BOOSTRY Inc.

Date and Time: August 4, 2026, 17:00 - 18:00

Application URL: https://peatix.com/event/5070348

*1 ibet for Fin: A consortium-type blockchain platform specializing in the issuance and distribution of STs, operated by BOOSTRY. Details [https://www.ibet.jp/ibet-for-fin]

*2 DvP settlement: Abbreviation for Delivery Versus Payment. It is a system where the delivery of securities and the payment of funds are mutually conditional, so that one does not occur unless the other occurs.

*3 Gas fee: The network usage fee incurred when sending or transacting on a blockchain. In this demonstration, the cryptocurrency Ether (ETH) corresponds to this.

【Company Overview】

Company Name

SBI Securities Co., Ltd.

URL

https://www.sbisec.co.jp

Location

1-6-1 Roppongi, Minato-ku, Tokyo

Representative

President and CEO Masato Takamura

Business Description

Financial Instruments Business / Kanto Local Finance Bureau (Kinsho) No. 44

Company Name

Daiwa Securities Co., Ltd.

URL

https://www.daiwa.jp/

Location

Grant Tokyo North Tower, 1-9-1 Marunouchi, Chiyoda-ku, Tokyo

Representative

President and CEO Akihiko Ogino

Business Description

Trading of financial instruments, brokerage, intermediation or agency for trading of financial instruments, underwriting of financial instruments, and related businesses.

Company Name

SBI Digital Markets Pte. Ltd.

URL

https://sbidm.com/

Location

83 Clemenceau Avenue, UE Square #04-05 East Wing Singapore 239920

Representative

Acting CEO CK Ong

Business Description

Corporate finance advisory, issuance, distribution, and custody of tokenized securities, dealing in capital markets.

Company Name

Penguin Securities Pte. Ltd.

URL

https://penguinsecurities.sg/

Location

1 Marina Boulevard #15-01/02 One Marina Boulevard Singapore 018989

Representative

Co-founder and CEO Kentaro Kawabe

Business Description

Trading, brokerage, and custody of securities (including security tokens) and derivatives.

Company Name

BOOSTRY Inc.

URL

https://boostry.co.jp/

Location

PMO Iwamotocho 4F, 3-9-2 Iwamotocho, Chiyoda-ku, Tokyo

Representative

President and CEO Kazuma Hirai

Business Description

Development and provision of platforms for exchanging rights of securities, etc., using blockchain technology (consulting, IT service provision, etc.)