Japan Prepares Blockchain Settlement System for Stocks and Government Bonds
Japan is planning to study the implementation of a blockchain settlement system for stock and government bond transactions, allowing for around-the-clock processing. The proposed system would connect securities transfer and cash payment more closely, enabling investors to access sale proceeds faster and potentially reinvest funds immediately.
The Financial Services Agency, Ministry of Finance, Bank of Japan, and participating financial institutions are expected to establish a study group in summer 2026 to complete an initial development plan by early 2027. This would examine the blockchain architecture, responsibilities assigned to public and private participants, and the system's implementation timetable.
The initiative builds on existing experiments by the Bank of Japan, which has been testing central-bank money on blockchain infrastructure. The BOJ is also exploring tokenized central-bank account deposits, sometimes called wholesale central bank digital currency, which could support delivery-versus-payment settlement.