Comparison of Token Issuance Schemes in Japan
#needs-review
On this page
[!info] TL;DR When issuing real-asset-backed tokens in Japan, there are mainly 3 schemes to choose from.
Scheme A: Crypto Asset Type
- Based on the Payment Services Act (→ Japan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Payments)
- Listed and distributed by crypto asset exchange operators (CAESP) (see Domestic CEX × deposit tokens / EPI integration strategy — DCJPY / Progmat / JPYC collaboration for the typical CEX-side overview)
- High post-listing liquidity
- Relatively clear regulatory treatment
- Suited to: liquidity-first, utilising existing exchanges
Scheme B: Security Token (ST) Type
- Based on rights represented by electronically recorded transferable securities under the Financial Instruments and Exchange Act
- Distributed via PTS (proprietary trading system) or handling operators
- Accessible to institutional investors (reference: RWA (Real World Asset) tokenization × CEX handling)
- Higher compliance burden
- Suited to: institutional investors, large-lot transactions
Scheme C: Trust Type
- Beneficiary-interest tokenisation under the Trust Business Act
- Requires collaboration with a trust bank (see Japan trust-type SC architecture for a similar SC design)
- Strongest investor protection
- High design flexibility but time-consuming to structure
- Suited to: conservative schemes with a trust bank partner
Selection criteria
Scheme selection is determined by:
- Target investor segment (retail vs institutional)
- Liquidity requirements (immediate listing vs long-term hold)
- Tolerance for regulatory compliance costs
- Availability of a partner financial institution
Reference: Japan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Payments · For the institutional framework on the stablecoin side, see Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax).
Related
Discovery
Keep reading
Read next
- Formalization of the Gray-Market Dollar NetworkThis entry sits under fintech index. Read it against 日本 Stablecoin 法制度の三層構造（JPYC・USDC・Project Pax） for peer / contrast context and 日本金融規制 — トークン・暗号資産・決済に関する法体系 for the broader system / regul...fintech/gray-market-dollar-network-formalization
- HK FRTB Stablecoin Reserve Requirements · HKMA Reserve FrameworkThis entry sits under fintech index. Read it with 日本金融規制 — トークン・暗号資産・決済に関する法体系 for adjacent context and 日本 Stablecoin 法制度の三層構造（JPYC・USDC・Project Pax） for the broader system boundary.fintech/hk-frtb-stablecoin-reserve-overview
- HKMA License Strategic Implications · Tether HK Asymmetric Bet + Mainland China SC ChannelThis entry sits under fintech index. Read it with Japan financial regulation — legal framework for tokens, crypto-assets, and payments for adjacent context and Japan stablecoin legal structu...fintech/hkma-stablecoin-licensing-implications
Links here
- Japan BitTrade Listing Process — 8 Stage Structure of Registered Exchange ListingThis entry sits under fintech index. Read it with 日本金融規制 — トークン・暗号資産・決済に関する法体系 for adjacent context and 日本 Stablecoin 法制度の三層構造（JPYC・USDC・Project Pax） for the broader system boundary.fintech/japan-bittrade-listing-process
- Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax)Stablecoin coverage in this wiki should route as follows:fintech/japan-stablecoin-regulatory-landscape
- The 5 -Stage Flow of Third-Party Allotment Capital Raises by Japanese Listed CompaniesClarifying the timing, parties involved, and monitoring points at each stage allows investors and counterparties to identify the current position accurately.fintech/japan-third-party-allotment-5-step-flow