Asia's Blockchain-Based Financial Initiatives Gain Momentum
Japan and India are pushing the boundaries of blockchain-based financial initiatives in Asia. The countries aim to leverage this technology for instant settlement of stock and government bond transactions.
According to Nikkei, Japan is planning to establish a payment infrastructure that will enable real-time settlement of stock and Japanese government bond transactions using blockchain technology.
The Financial Services Agency (FSA), the Ministry of Finance, the Bank of Japan (BOJ), and financial institutions are working together to launch a study group by 2027 at the earliest. The plan is expected to outline the blockchain's design, clarify the roles and responsibilities of participating agencies and institutions, and establish a development roadmap.
In India, REC, a government-owned financier, is set to issue its first tokenized corporate bonds in September. These digital securities will enable instant settlement of bond transactions using the country's central bank digital currency (CBDC), the digital rupee.
Thailand is also exploring blockchain-based financial initiatives. The Securities and Exchange Commission (SEC) has proposed principles for regulating and establishing digital currency exchange-traded funds (ETFs). This move aims to expand investment opportunities for local investors and promote product diversity in the country's capital market.