Japan Taps Blockchain for Faster Stock Settlement
Japan is taking steps to implement blockchain technology for faster stock and government bond settlements. A study group will be launched by the Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions this summer to formulate a development plan around the beginning of 2027.
The goal is to design a blockchain system that enables instantaneous settlement of transactions in stocks and Japanese Government Bonds (JGBs). Currently, cash settlement for stock trades occurs two days after execution, while JGB transactions are settled the day after.
If approved, operations could begin within a few years, with the system potentially up and running in the early 2030s. The instant payment system may also extend to international remittances.