Tokyo, Japan, 26 December 2025 - SBI Securities, Daiwa Securities, SBI Shinsei Bank, BOOSTRY, Osaka Digital Exchange and DeCurret DCP have commenced collaboration on a proof-of-concept for DVP2 settlement of security tokens (ST) using tokenised deposits - digital currency Japanese yen (DCJPY). This aims to realise a new settlement scheme for the development of the secondary market for security tokens. Project participants conducted verification of DVP settlement for ST and DCJPY using test data in August 2025, largely completing the system design and operational workflow for DVP settlement as envisioned for secondary ST trading. Moving forward, they will proceed with verification using actual issuance of ST and DCJPY.

Since the issuance of Japan's first digital bond (private placement bond) in 2020, the domestic ST market has accelerated in diversifying product offerings and expanding the range of financial institutions handling them. By the end of November 2025, the total amount of public offerings had grown to JPY 270 billion (about $1.72 billion). However, while ST transfers occur instantly on the blockchain, fund settlements are conducted via bank transfers. This has led the securities industry to identify strengthening settlement risk management and reducing administrative burdens as key challenges. As the ST market expands, resolving these issues becomes increasingly important, with expectations for standardising and rapidly implementing a DVP settlement method utilising digital currencies.

This project will demonstrate a new settlement scheme through system integration between BOOSTRY and DeCurret DCP, applied to ST trading transactions between SBI Securities and Daiwa Securities. This aims to demonstrate DVP settlement as one method for settling trades in the secondary ST market, reducing settlement risk and administrative burden, thereby contributing to the further expansion of the ST market.

This project's proof-of-concept scope involves DVP settlement using DCJPY during secondary trading of STs. BOOSTRY will lead development and operate/maintain the blockchain “ibet for Fin” as the consortium secretariat platform. STs issued and managed on this platform, along with DCJPY issued by SBI Shinsei Bank using the DeCurret DCP platform, will be utilised during the proof-of-concept process. The demonstration scheme and roles of each participant in this project are as follows:

Figure 1: Demonstration Scheme Diagram

Source: SBI Shinsei Bank

①The selling securities firm temporarily transfers the security token (ST) (preparation before final transfer)

②ST settlement information is synchronised between systems

③The buying securities firm requests issuance of DCJPY (transfers the issuance amount from the deposit account to the dedicated account)

④The buyer securities firm issues a transfer (wire) instruction for DCJPY to the seller securities firm

⑤DeCurret DCP verifies the settlement information

⑥Simultaneously with the DCJPY transfer, signs the ST transfer execution via system linkage (ST undergoes final transfer)

⑦The seller securities firm requests the redemption of DCJPY (transfers the issued amount from the dedicated account to the deposit account)

Digital currency is a general term for assets possessing monetary characteristics that are recorded, managed, and transferred using distributed ledger technology. This enables programmability in settlement through the functional features of distributed ledger technology, streamlining securities settlement processes such as DVP (Delivery Versus Payment) and settlement operations within securities administrative workflows. This is expected to reduce settlement risks and alleviate administrative burdens. DCJPY, used as a settlement means in this project, is a tokenised deposit provided by the DeCurret DCP platform, representing tokenised bank deposits. Tokenised deposits are considered a strong candidate for ST settlement due to their properties, such as value stability and accounting treatment, which align with those of conventional deposits. In this project, SBI Shinsei Bank will issue and redeem DCJPY using the platform provided by DeCurret DCP.

In August 2025, project stakeholders gathered to conduct verification of ST corporate bond and DCJPY DVP settlement using test data. Specifically, after clarifying the operational flow for securities settlement in ST's secondary market among stakeholders, the project confirmed a simulated DVP settlement scheme. This involved using verification ST corporate bonds issued via the “ibet for Fin” blockchain test environment—developed under BOOSTRY's leadership and operated/maintained by the consortium secretariat—alongside verification DCJPY issued via the DeCurret DCP test environment. The implementation involved participation from all securities settlement stakeholders, including the participating companies for the actual issuance verification—the primary objective of this project—enabling confirmation of the system image and operational workflow related to DVP settlement. Moving forward, we will advance discussions on system integration and operational procedures between both the ibet for Fin and DeCurret DCP platforms, aiming towards proof-of-concept with actual issuance of ST and DCJPY.

This project is positioned as the first step toward achieving instant gross settlement for STs in the future. Following this proof-of-concept, we plan to widely disseminate the results to ST market participants. We will then advance discussions among stakeholders toward practical implementation, enabling the new DVP settlement scheme verified in this project to be used between multiple securities firms participating in the ST secondary market “START” operated by ODX and the ST platform. By establishing this settlement scheme as one of the common settlement infrastructures in the secondary market for ST, we will enhance market efficiency, reduce settlement risks, and contribute to the development of a healthier market.

Re-disseminated by The Asian Banker