Japan Set to Explore Blockchain for Around-the-Clock Stock and Bond Trading

Japan is set to explore the use of blockchain technology for around-the-clock processing of stock and government bond transactions. A dedicated working group will be established in mid-2026, with development work expected to wrap up in early 2027.

The current settlement cycle for Japanese stock trades is on a T+2 basis, meaning settlement occurs two business days after the transaction, while government bond settlements generally happen on the next business day. This highlights the need for faster and more efficient processes.

Japan's central bank has already begun experimenting with distributed-ledger technology for settlement purposes, using commercial banks' current accounts. In March, Bank of Japan Governor Kazuo Ueda said the regulator was testing settlement operations, which he characterized as exploring tokenized central bank accounts.