Japan Aims to Put $7 Trillion Bond Market on Blockchain by 2030

Japan's financial sector is set to undergo significant changes as the country pursues a plan to introduce blockchain technology into its securities settlement infrastructure. The $7 trillion bond market will be targeted, enabling instant settlement for stocks and Japanese government bonds (JGBs) on a 24-hour basis.

The initiative is a joint public-private project involving Japan's Financial Services Agency (FSA), the Ministry of Finance, the Bank of Japan (BOJ), and major financial institutions. A concrete development roadmap is expected as early as 2027.

Major banks and securities firms are already participating in the project, conducting pilot programs to manage and circulate tokenized stocks and government bonds on blockchain platforms. The system being developed will serve as the settlement infrastructure that processes transaction payments for these tokenized securities in real-time.