Japan Taps Blockchain for Instant Stock Settlement

Japan is preparing to launch a blockchain-based payment infrastructure for instant settlement of stock and government bond transactions. The Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions will form a study group this summer to design the system.

The group aims to develop a plan by early 2027 at the latest, covering aspects such as blockchain design, division of responsibilities among agencies, and a roadmap for future work. Operations could begin within a few years, potentially reaching full deployment in the early 2030s if plans are approved.

The new system would enable real-time settlement, bridging the gap between trade execution and cash settlement, allowing investors to reinvest proceeds almost simultaneously.