Japan Executes Initial Test of Tokenized Deposit for Security Token Settlement
In December 2025, Japan conducted its first practical test for security token settlement using tokenized bank deposits, achieving simultaneous asset and payment settlement. This initiative, involving major banks and financial institutions, aims to modernize settlement processes and reduce reliance on traditional banking systems.
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Japan has completed its first live test of security token settlement utilizing tokenized bank deposits, specifically DCJPY, which is a digital currency backed by bank deposits. The trial confirmed the operational feasibility of using tokenized deposits for Delivery versus Payment (DVP) settlement, allowing simultaneous on-chain transfer of security tokens and payments.
Key participants include SBI Shinsei Bank, SBI Securities, and Daiwa Securities, with infrastructure support from DeCurret DCP and the 'ibet for Fin' blockchain platform by BOOSTRY. The project aims to enhance efficiency in securities trading and post-trade settlement.
Further improvements are needed in system integration and process automation. A limited rollout among select institutions is planned next, targeting a standardized framework for broader market adoption.
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