Asia's Blockchain Push: Japan Taps Crypto for Bonds, India Launches Tokenized Debt

Japan is exploring the implementation of blockchain technology for instant settlement of stock and government bond transactions. The plan, which involves the Financial Services Agency (FSA), the Ministry of Finance, the Bank of Japan (BOJ), and financial institutions, aims to establish a payment infrastructure that enables real-time settlements.

The current system in Japan takes two days for stock trades and one day for government bond transactions to settle. The proposed blockchain-based system could eliminate this delay by directly linking trade execution with cash settlement.

In related news, India is set to launch its first tokenized corporate bonds by September. The bonds, issued by REC, a government-owned financier, will be worth less than 5 billion rupees ($57 million) and will use the country's central bank digital currency (CBDC), the digital rupee.

Thailand's Securities and Exchange Commission (SEC) is also advancing rules for locally listed digital currency exchange-traded funds (ETFs). The SEC has published two consultation papers, one on the establishment and regulation of digital currency ETFs in Thailand and another on revising foreign DA custodian qualification requirements.