Japan to Build Blockchain-Based Instant Settlement System for Stocks and Government Bond Trading

Odaily News: Japan is preparing to establish a blockchain-based payment infrastructure to enable instant settlement for stock and Japanese government bond trading. 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 to be formulated as early as early 2027. The plan will cover blockchain design, division of responsibilities among institutions, and a future roadmap. If officially approved, the system could be built within several years and become operational as early as the early 2030s, with potential further expansion into international remittance services. Currently, cash settlement for stock trades in Japan is completed two days after execution, while government bond trades are settled the next day. A real-time settlement system would eliminate the time gap between trade execution and fund settlement, allowing investors to reinvest their proceeds almost immediately after selling assets.