Toyota Finance has opened applications for a 1 billion yen ($6.76 million) tokenized bond that pays 1.72% annually and matures in one year. The minimum application is 100,000 yen, and the offer is conducted as a self-offering through Toyota Wallet, so retail investors can apply directly without opening a securities account. The bond is formally named the Toyota Finance Second Security Token Bond and branded as the “TOYOTA Wallet Tsumugu Bond.”
Applications opened Tuesday through a dedicated page on Toyota Finance’s website, with allocations determined by lottery. Toyota Financial Services, Toyota Finance, SMBC Group and BOOSTRY said the bond will be managed using blockchain infrastructure from Japanese security token company BOOSTRY. The direct distribution model means Toyota Finance can handle applications, bondholder communications and investor benefits within its own services, and applicants do not need to hold the TS CUBIC CARD.
Bondholders may also receive Toyota Wallet QUICPay balances for everyday purchases, as well as Fuji Speedway viewing tickets and test drive experiences involving Lexus, GR and selected classic Toyota vehicles. The benefits are designed to connect the financial product with Toyota’s broader mobility services.
The issuance follows Toyota Finance’s first security token bond in March 2025, which was distributed through securities companies. Strong participation prompted the company to move distribution in-house for the second offering. The current bond is separate from Toyota Blockchain Lab’s mobility network prototype, which has been developed using Avalanche with support from Ava Labs.
Japan’s tokenized securities market has been increasingly moving onchain. Progmat recently migrated 452 billion yen worth of underlying assets to a dedicated Avalanche Layer 1, while SBI Global Asset Management and DigiFT launched a tokenized fund on Solana. The Japan Securities Clearing Corporation has also tested blockchain-based digital collateral with Mizuho Financial Group, Nomura Holdings and Digital Asset.
