Japan Targets Early-2030s Blockchain Settlement for $7 Trillion Bond Market
Japan's Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions are teaming up to create blockchain infrastructure for near-instant settlement of stocks and government bonds. The proposed system aims to replace T+2 settlement for stocks and T+1 settlement for Japanese government bonds with real-time processing.
The current settlement cycle for Japanese stocks is two days after execution, while government bonds settle the following day. Real-time processing would enable investors to reuse proceeds from asset sales almost immediately. The outstanding Japanese government bonds (JGBs) and Treasury bills total 1,166.7 trillion yen, roughly $7 trillion at recent exchange rates.
The project follows earlier institutional testing, including a JGB collateral trial on Apr. 20, 2026, using the Canton Network. The proof of concept tested round-the-clock transfers while preserving JGBs' existing legal treatment under Japan's securities framework.