# Japan's FSA Says Current Law Complicates DTCC-Style Omnibus Account By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/36814 Published: 2026-10-21T15:58:12.000Z Updated: 2026-10-21T15:58:12.000Z Section: Regulation > Japan is studying on-chain trading of stocks and other securities. Its account rules pose a hurdle for the pooled account used in a U.S. tokenization model. Japan’s Financial Services Agency (FSA) is exploring blockchain trading for securities, but Japanese account law makes it difficult to use the digital omnibus account central to a U.S. tokenization model. The issue centers on Japan’s book-entry system, where account records determine investors’ direct rights to securities. Current law limits the purposes for which a securities depository can open an account in its own name. That restriction complicates a pooled digital account like the one in the Depository Trust & Clearing Corporation’s (DTCC) model. At a Tuesday, Oct. 20, meeting, the FSA examined tokenization alongside stablecoins and decentralized finance. No securities held through Japan’s book-entry accounts — including government bonds, corporate bonds, investment trusts and stocks — have yet traded on chain. In the United States, The Depository Trust Company (DTC), DTCC’s depository subsidiary, is the registered holder of securities in its custody. Participants hold securities entitlements through DTC. Japan’s system instead ties investors’ rights directly to entries in its account records. Under the U.S. model, participants move the rights they want to tokenize from their accounts into a digital omnibus account. Matching tokens are then issued to participants’ wallets. Those tokens can change hands on chain while the total held in the pooled account stays the same. SEC staff issued a no-action letter to DTC on Dec. 11, 2025, for its tokenization service. DTCC plans to launch the service in the fourth quarter of 2026. The group also [used tokenized securities in production U.S. Treasury repo and equity trades]() on July 15. Japan’s review extends beyond the account restriction. A shared blockchain ledger raises questions about who maintains the record and bears responsibility for it. The FSA is also examining how to protect investor information and connect blockchain transfers with existing account entries. Separate experiments are testing whether securities and payments, including stablecoins, can settle together on chain. That process would pair a securities transfer with its payment, rather than handling the two separately. The FSA’s broader on-chain finance forum plans to present an interim review and a public-private roadmap in early 2027. ## Links in this article - [used tokenized securities in production U.S. Treasury repo and equity trades](https://www.tokenpost.com/news/technology/32913)