Japan Unveils Blockchain Plan for Instant Stock and Bond Settlement
Japan's financial authorities are pushing to create a blockchain-based system for instant settlement of stocks and government bonds, aiming to eliminate lengthy settlement periods.
The initiative involves the Financial Services Agency, Ministry of Finance, Bank of Japan, and major financial firms working together on a collaborative study group, which is set to convene in mid-2026.
The proposed system would enable simultaneous transfer of securities and corresponding payments, potentially tokenizing BOJ bank reserves, according to reports.
Japan's central bank has already conducted experimental blockchain settlement trials using commercial banking deposits. The government plans to finalize a comprehensive development strategy by the first quarter of 2027, with deployment possible in the early 2030s.