Comparison of Token Issuance Schemes in Japan
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[!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).