Toyota Finance has launched a ¥1 billion ($6.8 million) tokenized bond through Toyota Wallet, offering retail investors participation from as low as ¥100,000 without requiring a securities account. According to reports from Toyota Financial Services, the one-year bond pays 1.72% annually and uses BOOSTRY's ibet for Fin blockchain platform, which is a joint venture backed by some of Japan's largest financial institutions. The bond, formally called the Toyota Finance Second Security Token Bond and branded as the 'TOYOTA Wallet Tsumugu Bond', opened applications Tuesday through a dedicated page on Toyota Finance's website using a lottery process for allocations. As reported by TradingView News, the new bond will be distributed directly by Toyota Finance, allowing investors to buy it without opening a securities account.
The bond structure allows retail investors to apply after installing Toyota Wallet and accessing the dedicated bond application page, with no securities account or TS CUBIC CARD required. As reported by the companies, Toyota Finance has designed this structure to avoid repurposing its credit card payment collection system, opening the offering to eligible users outside its credit card customer base. Bondholders can receive Toyota Wallet QUICPay balances for everyday purchases and qualify for Fuji Speedway viewing tickets as well as test drive experiences involving Lexus, GR and selected classic Toyota vehicles, depending on applicable conditions. The second issuance introduces additional loyalty incentives beyond the first issuance's electronic money credits, with bondholders now receiving electronic money credits plus entries into lotteries for exclusive experiences including access to Fuji Speedway and hands-on time with Lexus vehicles. The direct distribution model allows Toyota Finance to integrate applications, communications with bondholders and investor benefits within the same ecosystem.
The bond utilizes blockchain infrastructure provided by Japanese security token company BOOSTRY, with Toyota Finance managing applications, communications with bondholders and investor benefits within its own services. According to the companies, this self-offering structure allows the company to handle the entire process as a single service, eliminating the need for buyers to purchase the bond through securities companies. The partnership roster includes Daiwa Securities, MUFG Bank, Mitsubishi UFJ Trust and Banking, and Toyota Financial Services. The bond adds to Toyota's growing blockchain initiatives, following the company's first security token bond in February 2025, which was sold through the Progmat tokenization platform from Mitsubishi UFJ Financial Group and matured on March 3, 2026. This represents Toyota Finance's second security token bond, demonstrating the company's continued exploration of tokenized financial products and its flexibility in choosing different blockchain vendors.
Toyota's bond enters Japan's expanding tokenized securities market, where regulated assets have increasingly moved on-chain. As reported by crypto.news, last month Progmat migrated ¥452 billion worth of underlying assets to a dedicated Avalanche Layer 1 platform, with internal testing showing rights transfers three to five times faster. Japan's tokenization activity has extended beyond bonds into investment funds, with SBI Global Asset Management and DigiFT launching a tokenized fund on Solana in July. The Japan Securities Clearing Corporation is also testing government bonds as digital collateral on the Canton Network while maintaining compliance with existing legal frameworks. Toyota Finance is the first major Japanese corporation to target retail investors specifically through security token bonds, with both issuances being non-transferable to eliminate secondary trading and simplify regulatory approval. The non-transferable structure avoids liquidity and regulatory complexity, making the regulatory approval process significantly smoother while maintaining conventional risk profiles as the proceeds fund vehicle purchase installment credits.
