Ondo Finance has joined forces with Japan's SBI Group to bring tokenized Japanese equities to the blockchain, using a yen-backed stablecoin called JPYSC for settlement. The partnership, announced this week, sent ONDO tokens up 15% to 17% as traders reacted to the news.
The Partnership and the Stablecoin
Under the deal, Ondo Finance will handle the tokenization of Japanese equities. SBI Group, a major financial services conglomerate in Japan, is the counterparty. The settlement process for these tokenized assets will rely on JPYSC, a stablecoin pegged to the Japanese yen. The two companies didn't disclose the specific equities or the timeline for the first tokenized offerings.
Why Tokenize Japanese Assets
Tokenizing real-world assets has been a growing trend in crypto, but this is one of the first moves focused on Japanese equities. By using a yen-denominated stablecoin, the deal avoids the FX volatility that often plagues cross-border tokenization. For Ondo Finance, it's a chance to expand into the Asian market. For SBI, it's a bet that blockchain-based settlement can speed up and lower the cost of trading traditional stocks.
Market Reaction
News of the partnership hit markets on Wednesday. ONDO, the native token of Ondo Finance's ecosystem, jumped from around $0.85 to above $0.99 before settling near $0.95. The rally added roughly $150 million to the token's market cap. The move came amid a broader uptick in crypto markets, but ONDO's gains outpaced most major altcoins.
Neither company has provided a date for when the first tokenized equity will trade. Investors will be watching for test transactions or a pilot launch in the coming months.
