Toyota Finance launches ¥1 billion tokenized bond via Toyota Wallet

Toyota Finance has opened applications for a ¥1 billion ($6.76 million) tokenized bond that pays 1.72% annually and can be bought through Toyota Wallet without opening a securities account.

Toyota Financial Services, Toyota Finance, SMBC Group and BOOSTRY said Tuesday that the one year public security token bond will be issued through a self offering by Toyota Finance, the first such security token bond structure used by the Toyota Group.

Applications start at ¥100,000 and opened Tuesday through a dedicated page on Toyota Finance’s website. The bond, formally called the Toyota Finance Second Security Token Bond and branded as the “TOYOTA Wallet Tsumugu Bond,” will be managed using blockchain infrastructure provided by Japanese security token company BOOSTRY.

By distributing the security directly, Toyota Finance can handle applications, communications with bondholders and investor benefits within its own services instead of requiring buyers to purchase the bond through a securities company.

Toyota tokenized bond can be bought without a securities account

Retail investors can apply after installing Toyota Wallet and accessing the dedicated bond application page, according to the companies. A securities account is not required to purchase the security.

Toyota Finance also said investors do not need to hold its TS CUBIC CARD to apply. The company is using a structure that does not repurpose the collection agency system used for its credit card payments, opening the offering to eligible users outside its credit card customer base.

The bond has a one year maturity and offers an annual interest rate of 1.72%. Toyota Finance has set the total issuance at ¥1 billion, with applications handled through a lottery process.

Toyota Wallet also gives the company a way to combine the investment product with benefits from Toyota’s existing consumer services. Depending on applicable conditions, bondholders can receive Toyota Wallet QUICPay balances that can be used for everyday purchases.

Other benefits are tied to Toyota’s automotive business. Investors can qualify for Fuji Speedway viewing tickets as well as test drive experiences involving Lexus, GR and selected classic Toyota vehicles.

Toyota Financial Services and Toyota Finance said the offering was designed to provide a more seamless application process while keeping their connection with investors through Toyota Wallet during the period in which they hold the bond.

Second Toyota security token bond changes the distribution model

The latest issuance follows Toyota Finance’s first security token bond in March 2025, which was sold to investors through securities companies.

For its second offering, Toyota Finance has moved distribution in house. The companies said the self offering structure allows the application process, bondholder communications and delivery of benefits to be designed as a single service.

Toyota Wallet sits at the center of that model as both a payment and mobility services application. Investors use it to access the bond application process, while some of the benefits attached to the security can also be delivered through the app.

The bond adds another blockchain project to Toyota’s work with digital assets and mobility infrastructure.

In August 2025, Toyota explored tokenizing cars through a Mobility Orchestration Network proposed by Toyota Blockchain Lab. The concept would connect vehicle information such as manufacturing, registration and maintenance records to blockchain infrastructure.

Toyota Blockchain Lab proposed giving vehicles blockchain based identities that could represent ownership and related information. Under the concept, vehicles including rental cars, logistics fleets and robotaxis could eventually be grouped into financial products or used in financing arrangements.

Days later, more technical details showed that the mobility network prototype was being developed using Avalanche with technical advisory support from Ava Labs.

The proposed system was designed to coordinate automakers, insurers, regulators and service providers while supporting functions including vehicle financing, ownership transfers, insurance claims, ride sharing agreements and electric vehicle charging payments.

Toyota Finance’s current security token bond is separate from that mobility project and uses BOOSTRY as its blockchain infrastructure provider.

Japan’s tokenized securities market is moving more assets onchain

Toyota’s bond also enters a Japanese financial market where regulated securities and investment products have increasingly been tested on blockchain networks.

Last month, Progmat migrated ¥452 billion worth of underlying assets and issued securities on its security token platform from Corda 5 to a dedicated Avalanche Layer 1.

Progmat said every active security token project managed on its platform moved to the new network while existing institutional controls and functions were retained. The migration also made its security tokens compatible with the Ethereum Virtual Machine after smart contracts were moved from Java based Corda code to Solidity.

Internal testing cited by Progmat found that rights transfers were three to five times faster under the new setup. The company also designed the infrastructure so its applications could connect with other blockchains in the future without rebuilding existing issuance and transfer processes.

Japan’s tokenization activity has extended from bonds into investment funds. SBI Global Asset Management and DigiFT launched a tokenized fund on Solana in July, providing accredited and institutional investors with blockchain based access to a Japanese high dividend equity strategy.

The SBI Japan High Dividend Equity Strategy Token uses DigiFT’s tokenization infrastructure and represents exposure to a strategy managed by SBI Asset Management. DigiFT said the platform supports USDC settlement, with integration of a Japanese yen stablecoin planned later.

Another Japanese project has focused on the collateral side of the securities market. In April, the Japan Securities Clearing Corporation began working with Mizuho Financial Group, Nomura Holdings and Digital Asset on a proof of concept involving Japanese government bonds.

As crypto.news reported at the time, the project is testing whether government bonds can function as digital collateral on the Canton Network while remaining compliant with Japan’s existing legal framework.

The participants are also examining real time and cross border collateral transfers, including whether blockchain infrastructure can make securities available for collateral use outside conventional operating windows.

Toyota Finance’s offering focuses on retail distribution instead. The company said its first security token bond in March 2025 attracted purchases from a large number of investors through securities companies, prompting it to design the second issuance around direct applications and services.

Applications for the one year bond opened Tuesday, with investments starting at ¥100,000 and Toyota Finance using a lottery to determine allocations.