SBI Securities Publishes Cross-Border Blockchain Security Token Verification Results
SBI Securities, Daiwa Securities and three other firms completed a proof-of-concept for cross-border security token trading using Ethereum and USDC, confirming the feasibility of public blockchain settlement while addressing regulatory and operational issues.
A consortium of Japanese and Singapore-based financial firms has completed a proof-of-concept testing the use of the Ethereum public blockchain and the USDC stablecoin for cross-border security token (ST) trading. The project was jointly conducted by SBI Securities, Daiwa Securities, SBI Digital Markets, Penguin Securities, and blockchain infrastructure provider BOOSTRY.
The trial focused on a scenario where domestic STs issued on the consortium-based ibet for Fin platform are mirrored onto Ethereum only during inter-dealer transactions with overseas securities firms. Settlement was executed using USDC in a Delivery Versus Payment (DvP) model. The aim was to explore whether public blockchain interoperability could efficiently connect Japanese ST markets with international investors while maintaining regulatory compliance.
According to the results, the system confirmed that stablecoin-based DvP settlement on Ethereum is technically viable and that public blockchain's global connectivity can be leveraged without compromising the security of domestic rights management. The consortium also tackled practical issues financial institutions face when using public blockchains, such as gas fee management, private key custody, business continuity planning, and the division of responsibilities between Japanese and Singaporean entities. Legal and tax implications were discussed with relevant authorities and self-regulatory organizations. SBI Securities and Daiwa Securities submitted a risk assessment to the self-regulatory body, which subsequently confirmed it had no additional concerns regarding the use of Ethereum for this project.
Going forward, the five firms plan to continue examining the feasibility of applying the framework to bond-type STs and real estate STs. They will also work on standardizing operational rules, improving stablecoin settlement workflows, and further refining the legal and regulatory framework needed to support cross-border distribution of Japanese digital securities. A public webinar detailing the results is scheduled for August 4, 2026.
The full technical report has been released by BOOSTRY.
Source: SBI Securities