Digital Securities Co. Ltd. Raises $2 Million for "renga" Platform, Bolstering Japan’s Digital Securities Market

Executive Summary

Digital Securities Co. Ltd., the operator of the digital securities platform renga, has completed its second A-round financing, securing 300 million JPY (approximately $2 million USD). This funding elevates the company's total accumulated capital to 1.2 billion JPY (approximately $8 million USD). The investment reflects a bullish sentiment for digital securities and Real-World Asset (RWA) tokenization in Japan, indicating strong institutional interest and optimism for renga's growth within the sector.

The Event in Detail

Digital Securities Co. Ltd. announced the successful completion of its second A-round financing, which garnered 300 million JPY. This capital injection was supported by significant Japanese corporate investment divisions, including SBI Ventures Three, Mitsubishi Corporation, and Mitsubishi UFJ Capital No. 10 Investment Limited Partnership. The renga platform is designed to offer fractional investment opportunities across a diverse range of products, such as real estate and solar energy funds, catering to both individual and institutional investors. The company's strategic objective is to establish itself as the "No. 1 platform provider in the digital securities industry in Japan," with plans to engage shareholders in various aspects from fund formation to sales strategies.

Market Implications

This financing event is poised to heighten attention on the digital securities market within Japan, potentially attracting further investment into comparable platforms and positively signaling the RWA tokenization narrative in the immediate term. The involvement of established financial entities like SBI Ventures Three and Mitsubishi UFJ Capital No. 10 Investment Limited Partnership highlights the increasing integration of traditional finance with Web3 technologies. Long-term implications include an accelerated pace for the development and adoption of digital securities in Japan, which may influence regulatory frameworks and draw more conventional financial players into the Web3 space. This trajectory strengthens Japan's position as a leader in digital transformation and innovative financial ecosystems. The Osaka Digital Exchange (ODX) also operates the "START" secondary market for security tokens, which, despite a total transaction volume of approximately 326 million JPY in FY2024, signals nascent but steady progress in liquidity for tokenized assets.

Broader Context

Japan has been actively cultivating an environment conducive to digital securities and blockchain innovation. The overall public Security Token Offering (STO) market in Japan for FY2024 reached 46.4 billion JPY in total issuance amount. Real estate securitization constituted approximately 89% of this market, totaling 417 billion JPY, primarily through beneficiary certificate issuance trusts backed by various real estate assets. Competing platforms like ibet for Fin secured a 50% share of public issuance volumes with 23.3 billion JPY, while Progmat (Mitsubishi UFJ Trust and Banking Corporation) achieved a 48% share with 22.4 billion JPY. Securitize held a 1.4% share with 670 million JPY. These figures illustrate a competitive yet growing landscape for digital securities. Furthermore, the strategic moves by financial giants such as SBI Holdings underscore this trend. SBI Holdings has been aggressively investing in Web3, AI, and RWA tokenization, notably through its SBI Digital Space Fund, a 100 billion JPY vehicle targeting high-growth sectors. The company's joint venture with Startale Group to develop an on-chain trading platform for tokenized stocks and RWAs further exemplifies the commitment to this emerging financial frontier. Japan's Ministry of Digital Transformation, through initiatives like WebX 2025, continues to champion the tokenization of real-world assets, positioning the country as a global leader in digital finance by aligning policymakers with innovators to standardize tokenized securities.