Japan Considering Blockchain-Based Instant Settlement for Stocks and Government Bonds

August 26 - According to Reuters, Japan is preparing to build a blockchain-based payment infrastructure to achieve instant settlement for stock and Japanese government bond transactions. The Financial Services Agency, the Ministry of Finance, the Bank of Japan, and related financial institutions will launch a research group this summer, with a development plan expected as early as early 2027, covering blockchain design, division of responsibilities among institutions, and a future roadmap. If the plan receives formal approval, the system could be built within several years and potentially become operational as early as the early 2030s, with possible expansion to international remittances. Currently, cash settlement for Japanese stock trades is completed two days after execution, while government bond trades settle the next day. A real-time settlement system would eliminate the time gap between trading and fund settlement, allowing investors to almost immediately reinvest proceeds from asset sales.