Comparison of Token Issuance Schemes in Japan

[!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:

1. Target investor segment (retail vs institutional)
2. Liquidity requirements (immediate listing vs long-term hold)
3. Tolerance for regulatory compliance costs
4. 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

• Wiki Index
• Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax)
• The 5 -Stage Flow of Third-Party Allotment Capital Raises by Japanese Listed Companies