Project Trinity: Stablecoin-powered DvP Settlement for Security Tokens

We’re excited to announce that Project Trinity — a stablecoin-based DvP settlement initiative for security tokens — has officially kicked off, led by SMBC, Daiwa Securities, Progmat, Boostry, and Datachain, with TOKI as the technology partner, alongside other financial institutions.

In this project, we’re enabling cross-chain atomic swaps between security tokens and stablecoin across different chains, leveraging IBC and LCP. While we’re exploring the other cross-chain way, this is one of the strongest.

We’re not just a cross-chain bridge provider — we’re a cross-chain infrastructure partner trusted by leading financial institutions.

This post outlines the market landscape in Japan for stablecoins and security tokens, explains what Project Trinity is, and highlights our role in it.

TL;DR

• Project Trinity has begun: A project led by SMBC, Daiwa Securities, Progmat, Boostry, Datachain (including TOKI) and other financial institutions has kicked off a PoC for a stablecoin-based DvP settlement initiative for security tokens, which is divided into 3 phases.
• Atomic swap of stablecoins and security tokens: Using IBC + LCP and TOKI’s Cross Framework, Project Trinity enables atomic DvP between stablecoins ↔ security tokens across multiple blockchains, including Avalanche and Quorum.
• Japan’s got momentum in RWA: Japan’s updated Payment Services Act enables compliant stablecoins; security token issuance exceeded ¥193.8 billion (around $1.3 billion) by the end of July 2025.
• Faster, safer, near-24/7 settlement: Project Trinity aims to eventually deliver near-24/7 settlement with reduced counterparty and synchronization risk — bringing Japan’s secondary market infrastructure into the next generation.

Market Landscape in Japan

Japan’s stablecoin market is rapidly evolving. With new regulations under the Payment Services Act, stablecoins can now be issued in a compliant and secure way. This development opens the door for faster and safer settlement in financial transactions.

SMBC is among the banks exploring the issuance of its own stablecoin. The bank announced an MoU with Ava Labs, Fireblocks, and TIS to initiate joint discussions on the commercial use of stablecoins.

The security token market in Japan has already grown significantly, exceeding 160 billion yen in issuance in 2024. More growth is expected in 2025, with real estate-backed and even movable asset-backed tokens entering the market.

Stablecoins are attracting attention as a key tool to make securities settlement more efficient. They are seen as a way to reduce risks and modernize Japan’s financial infrastructure.

What’s Project Trinity?

Project Trinity is a joint initiative by SMBC, Daiwa Securities, Progmat, Boostry, Datachain, and other financial institutions to improve settlement in Japan’s secondary market for security tokens. The project aims to use stablecoins to enable atomic settlement, or Delivery versus Payment (DvP) settlement of security tokens on different blockchains.

Enabling secure, seamless atomic settlement across multiple chains is essential. This is where TOKI comes in: we’re helping build a DvP settlement system powered by IBC and LCP.

Currently, settlement systems are not fully synchronized, which leaves room for risk. By using blockchain smart contracts, Project Trinity will make settlements faster, safer, and more efficient. It represents a first step toward 24/7, real-time securities settlement in Japan.

Why TOKI? Why IBC?

SMBC’s stablecoin is expected to launch on Avalanche, while Boostry’s and Progmat’s security tokens operate on different blockchains.

We provide secure cross-chain messaging that leverages IBC and LCP, plus a middleware layer — Cross Framework — that enables atomic swaps between chains.

Leveraging IBC’s permissionless design, we enable secure, efficient, cross-chain atomic swaps (DvP settlement) of stablecoins and security tokens across multiple blockchains.

Final Thoughts

Japan is gaining momentum in stablecoin adoption for enterprise TradFi use cases. This DvP settlement initiative is one of the leading efforts in the market, and we’re proud to be part of it.

While discussions continue on how to enable interoperability across multiple chains, we’re working with our partners to move this forward and establish a key stablecoin use case.

We’ll also be co-hosting the Japan Stablecoin Summit on September 10 — just a heads-up!

more details on this initiative, you can check the press release here (in Japanese):

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Project Trinity: Stablecoin-powered DvP Settlement for Security Tokens was originally published in Cosmos Ecosystem Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.