Japanese financial conglomerate SBI Holdings has announced the launch of a ¥10 billion (about $64.5 million) blockchain-based bond offering that integrates cryptocurrency incentives for retail investors. The move marks one of Japan’s most significant steps in blending traditional fixed-income products with digital asset rewards.
The new securities, branded SBI START Bonds, are being issued and recorded onchain using BOOSTRY’s “ibet for Fin” platform, a blockchain system designed for security token issuance. The instruments carry a three-year maturitywith semiannual interest payments, and are scheduled for secondary market trading beginning March 25 on the Osaka Digital Exchange’s proprietary START trading system.
Hybrid Structure: Fixed Income Meets Crypto Rewards
In addition to traditional yields, eligible investors will receive token rewards in XRP, the native digital asset associated with the XRP Ledger. Under the structure:
- Investors must subscribe for a minimum of ¥100,000 (roughly $650) through SBI’s crypto exchange, SBI VC Trade, to qualify for rewards.
- Eligible participants receive approximately ¥200 worth of XRP per ¥100,000 invested, with distributions made at issuance and again on each interest payment date through 2029.
The bonds’ indicative annual interest rate ranges from 1.85% to 2.45%, with the final coupon rate expected to be set at pricing.
Market and Strategic Implications
Industry analysts view the SBI START Bonds as a test case for broader adoption of tokenized securities in regulated markets, particularly in Japan’s progressive regulatory environment. By combining fixed-income returns with digital incentives, SBI aims to attract a wider range of retail participants into blockchain-linked financial products.
This initiative also reflects SBI’s long-standing support for blockchain and XRP-linked technologies. SBI has maintained partnerships and strategic ties within the XRP ecosystem in recent years, including through remittance services and crypto exchange offerings.
The bonds will trade on the Osaka Digital Exchange, a licensed platform offering secondary market access for tokenized securities. The March 25 trading start gives bondholders the ability to buy and sell the instruments post-issuance, enhancing liquidity for the novel product.
Investor Access and Eligibility
Participation is currently limited to domestic retail investors and resident companies able to meet SBI VC Trade’s account requirements. This ensures compliance with Japanese securities laws and standards for regulated financial products.
As financial markets continue exploring digital asset integration, SBI’s latest offering may serve as a blueprint for similar hybrid products that seek to bridge traditional finance with emerging blockchain technology.
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