Pan Pacific International Holdings (PPIH), the $21 billion Japanese retail giant behind Don Quijote discount stores, Apita malls, and Piago supermarkets, is set to launch a digital bond in August that represents a departure from typical digital bond issuances.

The move is notable as few large companies outside the financial and technology sectors have issued digital bonds. PPIH’s initiative targets its young customer base directly.

The one year bond offers a 1% return and includes a unique feature designed to attract PPIH’s core demographic. Investors aged 24 and under will earn majica rewards points through the company’s digital payment app, redeemable across the entire PPIH group. This youth focus aligns with the company’s plan to use proceeds for youth empowerment programs.

With a total value of approximately $700,000 and minimum investment of 100,000 yen ($69), the issuance is relatively small scale. PPIH is conducting a month long draw system rather than direct sales, suggesting they anticipate demand exceeding supply. The company is proceeding without traditional intermediaries, though SMBC Nikko Securities serves as advisor.

Japan’s evolving tokenization landscape

The issuance occurs within Japan’s relatively developed security token environment, where real estate tokenizations dominate with dozens of issuances. Platforms like Alterna, operated by Mitsui & Co Digital Asset Management, target retail investors directly, similar to PPIH’s approach. Mitsui & Co has previously partnered with retailers to promote security token issuances.

Digital bond issuers to date have comprised four main categories: public institutions like the World Bank and European Investment Bank, financial institutions including KfW and Nomura, technology linked companies such as Siemens and Hitachi, and various small to medium enterprises. Other large corporations remain notably absent from this list, making PPIH’s initiative significant for the broader adoption of corporate security tokens.