tokenization of real assets in Japan

Japan pushes on on-chain finance: SBI Group and Chainlink initiate a collaboration to bring RWAs, regulated stablecoins, and services for institutions on an industrial infrastructure ready for the capital markets.

With assets under management exceeding 200 billion USD (see PR Newswire), SBI offers critical mass and access to counterparties; Chainlink provides connectivity, verifications, and cross-chain interoperability. The goal is clear: to convert traditional assets into tokenized instruments, with deeper liquidity and faster settlement.

According to data collected by market analysts and official communications from the parties involved, the partnership is designed to launch initial pilot initiatives on institutional use cases between the end of 2024 and 2025.

Industry observers note how the adoption of oracles and Proof of Reserve mechanisms increases transparency — a factor considered crucial for attracting regulated issuers and institutional investors.

The partnership: what it really entails

The agreement aims at the development of institutional use cases for tokenized real-world assets (RWAs), tokenized funds, and stablecoin compliant with Japanese regulations, with an initial focus on the domestic market and on compliant cross-border transactions.

According to the official announcement (PR Newswire), the collaboration aims to strengthen institutional adoption and the scalability of issuance, exchange, and control processes. It should be noted that the use cases will be designed with security and compliance requirements from the outset.

Key data at a glance

• AUM SBI: greater than 200 billion USD (size data; not exclusively related to RWAs; data reported by SBI in public communications, updated 2024).
• Technologies: Chainlink https://chain.link/cross-chain (interoperability) and https://chain.link/proof-of-reserve (proof of reserves).
• Market: Japan as a launch point, with extension towards cross-border flows.
• International references: the topic of tokenization has been analyzed by international authorities — see the report from the Bank for International Settlements (CPMI) dated October 17, 2024, which highlights opportunities and risks for central banks and financial infrastructures.
• Regulation: stablecoins subject to updated regulations; tax proposals and regulatory measures (e.g., separate taxation) are currently under discussion ([data to be verified]).

Technology: how the tokenization of RWAs is enabled

To make secure and verifiable the tokenization, the partnership integrates infrastructural components already adopted in the markets. In this context, the architectures are designed for high-reliability environments:

• Data oracles to connect information from the off-chain world to the on-chain world, including prices, indices, and market events.
• https://chain.link/proof-of-reserve to attest on-chain the underlying reserves of stablecoin and tokenized funds, reducing the risk of discrepancies.
• https://chain.link/cross-chain to ensure cross-chain interoperability with security controls and programmable policy, useful in cross-border flows.
• Privacy and compliance: attestations and permissioned access to ensure alignment with KYC/AML and reporting.

Regulatory Framework in Japan (recently updated)

Japan has introduced stringent rules for stablecoins and digital assets, under the supervision of the FSA. “Fiat-backed” stablecoins are allowed through regulated issuers (e.g., banks, trusts, fund transfer institutions) with obligations on reserves, audits, and fund segregation.

Institutions that distribute or manage tokens based on real assets must adopt rigorous standards in KYC/AML, the travel rule, and periodic reporting.

Further details are available on the FSA Japan website (consulted for the update of this analysis, August 2025). An interesting aspect is the focus on transparency in attestation mechanisms.

Crypto taxation: hypothesis of a separate 20% rate

In the ongoing political debate, the hypothesis of a separate taxation at 20% for income derived from crypto emerges, as an alternative to the current regime that can apply higher rates.

A clear and competitive regime could support institutional adoption, favor the introduction of domestic listings and the retention of capital in Japan, with impacts on volumes and liquidity of on-chain markets. (Further information and official confirmations are currently under discussion [data to be verified].)

ETF and regulated access

The topic of cryptocurrency ETFs is under analysis in Japan, with an emphasis on investor protection and alignment with international standards.

A potential green light could facilitate the entry of retail and institutional capital into regulated products and, potentially, into solutions linked to RWAs and stablecoin. It should be noted that the timing remains a point to be followed closely.

Practical implications for stakeholders

• Financial institutions: opportunity to issue and manage tokenized funds and debt instruments with settlement T+0/T+1, on-chain controls, and automated reporting.
• Retail investors: possibility, in perspective, to access fractional shares of instruments based on real assets, through regulated channels (e.g., funds/ETFs, if approved).
• Regulators: greater traceability and auditability of flows thanks to oracles and on-chain attestations, with near real-time monitoring.

Priority use cases: payments and capital markets

• Tokenized cross-border payments: compliant stablecoins, integrated with oracles, for reduced transaction times and lower costs, while maintaining a high level of compliance.
• Deposits as guarantee and collateral: use of https://chain.link/proof-of-reserve to certify, in near real-time, the collateral of stablecoin and tokenized funds.
• Debt instruments and funds: on-chain issuance with codified rules and rights (coupons, reimbursements, whitelisting).

Risks and controls

• Operational risk: IT integration, custody, and key management; it is essential to adopt robust procedures and audits.
• Technological risk: issues related to bridges and interoperability; addressed through https://chain.link/cross-chain, policies, and environment segregation.
• Regulatory uncertainty: evolution of tax rules and regulations on ETFs; greater clarity is needed on boundaries and timelines.

Immediate impact of the SBI–Chainlink partnership

The collaboration introduces ready-to-use infrastructure for RWAs and compliant stablecoin, enables tokenized cross-border payments, and provides verifiable proof of reserves.

In the short term, this can help reduce operational costs, accelerate adoption, and attract regulated issuers to Japanese platforms. In this context, coordination between operators and regulators will be crucial (see section What to monitor in the coming months).

What to monitor in the coming months

• First pilot issuances of tokenized funds/bonds supported by attestations via https://chain.link/proof-of-reserve.
• Opening to the launch of fiat-backed stablecoin with banks or trusts as issuers and the publication of transparent audits.
• Fiscal clarity regarding the possible introduction of a separate 20% rate ([data to be verified]).
• Decisions regarding ETF products and the access of regulated retail channels.

Competitive Context: Asia on the Move

Tokyo aims to become a hub for tokenized capital markets in Asia, competing with centers like Hong Kong and Singapore.

The operational leverage of SBI in banking, brokerage, and asset management, combined with the technological infrastructure of Chainlink, promises scale and connectivity from the outset. An interesting aspect is the possible creation of common standards among neighboring jurisdictions.

Conclusion

The collaboration between SBI and Chainlink marks an innovative phase for tokenization in Japan, introducing enterprise infrastructure, on-chain verification mechanisms, and a path towards regulated products with greater liquidity.

The speed at which regulations, technology, and the market will converge will determine the impact on tokenized payments, funds, and debt instruments. It must be said that operational execution will remain a testing ground.

Sources and transparency

Note: For the sections regarding taxation (hypothesis of a separate rate at 20%) and for any direct quotes from spokespersons, it is recommended to integrate links to the official documents of the Web3/LDP working group and the original SBI statement as soon as they are available.