Japan's Blockchain Fast Lane for Securities Cash Settlement Takes Shape
The Financial Services Agency (FSA), Ministry of Finance, Bank of Japan (BOJ), and financial institutions are teaming up to study a blockchain-based system for immediate cash settlement of stock and Japanese government bond transactions.
The proposed system would convert some deposits held by banks in BOJ current accounts into digital tokens that could circulate on the blockchain for interbank settlement.
A study group is expected to be established this summer, with a plan to produce a development outline by early 2027. If approved, the system could begin operating in the early 2030s.