Notice of Completion of Japan's First Actual Issuance Verification of Security Token Settlement Using Tokenized Deposits

SBI SECURITIES Co., Ltd. (Representative Director and President: Masato Takamura, hereinafter "SBI SECURITIES"), Daiwa Securities Co. Ltd. (Representative Director and President: Akihiko Ogino, hereinafter "Daiwa Securities"), SBI Shinsei Bank, Limited (Representative Director and President: Katsuya Kawashima, hereinafter "SBI Shinsei Bank"), BOOSTRY Co., Ltd. (Representative Director and President: Kazuma Hirai, hereinafter "BOOSTRY"), Osaka Digital Exchange Co., Ltd. (Representative Director and President: Kimio Mikazuki, hereinafter "ODX"), and DeCurret DCP Inc. (Representative Director, President and CEO/COO: Yoshio Hirako, hereinafter "DeCurret DCP") have implemented a demonstration of DVP3 settlement for STs (hereinafter "this project") using tokenized deposit DCJPY (hereinafter "DCJPY"). This is based on the "Commencement of Collaboration on Japan's First Actual Issuance Verification of Security Token Settlement Using Tokenized Deposits" dated December 26, 2025, aiming to realize a new settlement scheme for the development of the secondary market for security tokens (hereinafter "ST")1. Background of this project Since the first domestic issuance of digital bonds (private placement bonds) in 2020, the domestic ST market has accelerated the diversification of product characteristics and the expansion of handling financial institutions. On the other hand, while the transfer of STs on the blockchain occurs instantly, fund settlement is carried out via bank transfers. Therefore, the securities industry has pointed out the need to strengthen the management of settlement risk and reduce the administrative burden. With the future expansion of the ST market, solving this issue has become important for the securities industry, and the standardization and early practical application of the DVP settlement method utilizing digital currency are highly anticipated. In this project, we demonstrated a new settlement scheme through system integration between BOOSTRY and DeCurret DCP in ST trading transactions between SBI SECURITIES and Daiwa Securities. By doing so, we aim to demonstrate DVP settlement, which reduces settlement risk and administrative burden, as one of the settlement methods for buying and selling in the ST secondary market, and contribute to the further expansion of the ST market. Overview of this project The demonstration scope of this project is DVP settlement using DCJPY during the secondary circulation of STs. We utilized STs issued and managed on the blockchain platform "ibet for Fin"4, for which BOOSTRY led the development and operates/maintains as the consortium secretariat, and DCJPY issued by SBI Shinsei Bank utilizing DeCurret DCP's platform during the demonstration process. The demonstration scheme and the roles of each participant in this project are as follows. [Figure 1 Demonstration Scheme Diagram] 1. The selling securities company provisionally transfers the security token (ST) (preparation before official transfer). 2. ST settlement information is linked between each system. 3. The buying securities company requests the issuance of DCJPY (transfers the issued amount from the deposit account to a dedicated account). 4. The buying securities company executes an instruction to transfer (remit) DCJPY to the selling securities company. 5. DeCurret DCP matches the settlement information. 6. Simultaneously with the DCJPY transfer, the execution of the ST transfer is signed via system integration (ST is officially transferred). 7. The selling securities company requests the cancellation of DCJPY (transfers the issued amount from the dedicated account to the deposit account). [Figure 2 Roles of Participants in the Demonstration] Company / Role of Participant Daiwa Securities / Acquisition and trading of STs SBI SECURITIES / Trading of STs SBI Shinsei Bank / Issuance and cancellation of DCJPY BOOSTRY / Leading the development of ibet for Fin, providing ST issuance/management system DeCurret DCP / Issuer of ST corporate bonds, providing the DCJPY network ODX / Participating as an observer in anticipation of future use in PTS trading settlement Digital currency is a general term for assets with currency characteristics that are recorded, managed, and transferred using distributed ledger technology. This makes it possible to equip settlements with programmability due to the functional characteristics of distributed ledger technology, expecting efficiency in DVP implementation for securities settlement and settlement operations in the securities administrative flow, as well as reductions in settlement risks and administrative burdens. The DCJPY used as a settlement method in this project is a tokenized deposit that links SBI Shinsei Bank's deposits and tokens on a platform provided by DeCurret DCP. Tokenized deposits linked to bank deposits are considered a strong option for ST settlement because they possess the characteristics of general deposits, such as value stability and accounting treatment methods. In March 2026, using digital corporate bonds issued by DeCurret DCP and DCJPY handled by SBI Shinsei Bank, we conducted verification of escrow-type DVP settlement during ST secondary circulation. Specifically, the ST issued by DeCurret DCP...