Japan Plans Blockchain-Based Cash Settlement System

The Financial Services Agency (FSA), Ministry of Finance, Bank of Japan (BOJ) and financial institutions in Japan are planning to study blockchain infrastructure for a potential fast lane system.

The proposed system would enable immediate cash settlement of stock and Japanese government bond transactions at any time of day, rather than the current T+2 or T+1 timeframe.

A study group is expected to be established this summer to decide how the blockchain-based infrastructure will be built and divide responsibilities among public agencies and financial institutions.