Japan Pushes Ahead with Blockchain-Powered Stock Settlement Infrastructure
Japan is taking steps towards developing a blockchain-based settlement infrastructure for real-time stock and bond transactions, according to a report. The initiative involves several government agencies and financial institutions.
A study group will be formed in the summer of this year to develop a comprehensive strategy by early 2027. This includes designing the blockchain system, allocating responsibilities among relevant parties, and creating a roadmap for future work.
The proposed system would tokenize part of banks' deposits at the Bank of Japan for use in blockchain-based settlement, rather than creating a retail digital currency for consumers.
Japan's leading three banks and major securities firms are already conducting a pilot project on managing and distributing tokenized stocks and government bonds on blockchain networks.