Japan’s financial regulators and major banks are preparing to assess a blockchain-based system for immediate cash settlement of stock and Japanese government bond transactions, potentially eliminating traditional settlement delays.
The Financial Services Agency, Ministry of Finance, Bank of Japan and financial institutions plan to form a study group this summer to outline the infrastructure, assign roles and produce a development plan by early 2027. If approved, the system could launch in the early 2030s, according to Nikkei.
The proposed platform would convert a portion of banks’ deposits held in BOJ current accounts into digital tokens usable for interbank settlement on a blockchain network. Under current rules, equity trades in Japan settle two business days after execution (T+2), while domestic government bond trades settle the next business day (T+1).
The initiative reflects efforts to modernize Japan’s post-trade infrastructure amid broader discussions on digital asset adoption in capital markets. Regulators and industry participants will evaluate technical feasibility, regulatory compliance and integration with existing systems before advancing the proposal.
