Japan Plans Blockchain-Based Instant Settlement System for Stocks and Government Bonds

August 26 — According to Nikkei, Japan is preparing to build a blockchain-based payment infrastructure to enable instant settlement for stock and Japanese government bond transactions. The Financial Services Agency, Ministry of Finance, Bank of Japan, and relevant financial institutions will launch a research group this summer, with a development plan to be formulated as early as early 2027, covering blockchain design, division of responsibilities among institutions, and a future roadmap. If the plan is formally approved, the system could be built within several years, potentially becoming operational in the early 2030s, and may later expand 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 trade execution and fund settlement, allowing investors to reinvest proceeds almost immediately after selling assets.

[Rhythm]