Toyota Finance opened applications for a ¥1B tokenized bond paying 1.72% that can be bought through Toyota Wallet without a securities account. The self-offering structure moves distribution in-house.
Toyota Finance opened applications Tuesday for a ¥1 billion ($6.76 million) tokenized bond that pays 1.72% annually and can be bought through Toyota Wallet without a securities account.
The bond, branded the "TOYOTA Wallet Tsumugu Bond," is the second security token bond from the Toyota Group. The first, issued in March 2025, was sold through securities companies. This time Toyota Finance moved distribution in-house.
By handling the offering directly, Toyota Finance can manage applications, bondholder communications and investor benefits inside its own services. The company said the self-offering structure lets it design the application process, communications and benefit delivery as a single service.
The bond has a one-year maturity. Applications start at ¥100,000 and are handled through a lottery process. Investors install Toyota Wallet and access a dedicated application page. A securities account is not required. The company also said investors do not need its TS CUBIC CARD to apply, because the offering does not repurpose the credit card collection system.
Toyota Wallet sits at the center of the model. Investors use it to apply. Some bond benefits also flow through the app. Depending on conditions, bondholders can receive Toyota Wallet QUICPay balances for everyday purchases. Other perks tie to the automotive business: Fuji Speedway viewing tickets, test drives involving Lexus, GR and selected classic Toyota vehicles.
Blockchain infrastructure comes from BOOSTRY, a Japanese security token company. Toyota Financial Services, Toyota Finance, SMBC Group and BOOSTRY announced the offering jointly.
The bond adds another blockchain project to Toyota's digital asset work. In August 2025, Toyota explored tokenizing cars through a Mobility Orchestration Network proposed by Toyota Blockchain Lab. The concept would give vehicles blockchain-based identities for manufacturing, registration and maintenance records. The mobility network prototype was developed on Avalanche with support from Ava Labs. That project remains separate from the current bond.
Toyota's offering enters a Japanese market where regulated securities are being tested on blockchain networks more frequently. Last month, Progmat migrated ¥452 billion worth of underlying assets and issued securities from Corda 5 to a dedicated Avalanche Layer 1. Every active security token project on its platform moved to the new network. Rights transfers were three to five times faster under the new setup, internal testing cited by Progmat found.
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 fund uses USDC settlement, with a Japanese yen stablecoin planned.
On the collateral side, the Japan Securities Clearing Corporation began working with Mizuho Financial Group, Nomura Holdings and Digital Asset in April on a proof of concept testing whether Japanese government bonds can function as digital collateral on the Canton Network.
Toyota Finance's offering focuses on retail distribution. The company said the first security token bond in March attracted purchases from a large number of investors through securities companies. That prompted the in-house design for the second issuance. Applications opened Tuesday, with Toyota Finance using a lottery to determine allocations.
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