Japan Eyes Blockchain Settlement System for Stocks and Bonds

Japan is planning to study a blockchain settlement system that can process stock and government bond transactions around the clock. The proposed system would aim to reduce delays in settling trades, currently taking two days for stocks and one day for government bonds.

The study group, expected to be established by summer 2026, will consist of financial regulators, the Finance Ministry, Bank of Japan, and financial institutions. They will examine the development plan, which could arrive in early 2027, with operations potentially beginning during the 2030s.

Japan's blockchain settlement plan targets existing delays in the current T+2 settlement cycle for stocks and next-day settlement for government bonds. The proposed infrastructure would connect securities transfer and corresponding cash payment more closely, allowing investors to access sale proceeds faster.