Japan Aims for Real-Time Blockchain Settlement

Japan is planning to study the feasibility of implementing a blockchain settlement system for stocks and government bonds, allowing for around-the-clock transactions. This would be a significant development for Japan's financial markets, which currently settle stock trades two days after the trade date and government bond trades on the next business day.

The proposed study group, expected to be established in summer 2026, will comprise of representatives from the Financial Services Agency, Ministry of Finance, Bank of Japan, and participating financial institutions. The group's initial development plan is slated for completion in early 2027, with potential operations beginning in the 2030s.

The proposed blockchain infrastructure aims to connect securities transfer and corresponding cash payment more closely, enabling investors to access sale proceeds faster and potentially reinvest the funds immediately. This could reduce exposure of counterparties to each other during settlement delays and create new liquidity and operational requirements for market participants.