Japan Taps Blockchain for Instant Stock and Bond Settlement
Japan is on the path to introducing a blockchain-based settlement system for stocks and government bonds. The plan aims to settle transactions instantly, replacing the current two-day delay for stock trades and one-day delay for government bonds.
The Financial Services Agency (FSA), Ministry of Finance, Bank of Japan, and several financial institutions will establish a study group this summer to explore the implementation details. By early 2027, a development plan is expected to be ready, with the system potentially operational in the early 2030s.
The Bank of Japan has already been testing blockchain settlement using commercial bank deposits on a sandbox environment. This effort focuses on tokenized central bank deposits and could enable securities and cash to move simultaneously.