Japan plans to launch a blockchain-based settlement system for stocks and government bonds in the early 2030s

Odaily News: Japan's Financial Services Agency, the Ministry of Finance, the Bank of Japan, and major financial institutions plan to build a nationwide blockchain-based settlement infrastructure for stocks and Japanese government bonds (JGBs). A working group is expected to be established this summer, with related efforts slated to begin as early as 2027. If formal approval is granted and testing goes smoothly, the new system could become operational in the early 2030s.

Under the plan, the Bank of Japan will convert a portion of reserves held at the central bank into digital tokens, serving as a wholesale CBDC for use among financial institutions. Currently, Japanese stocks and government bonds settle on T+2 and T+1 cycles, respectively. The new system aims to shorten both to near-real-time settlement. Additionally, major Japanese banks including MUFG, SMBC, and Mizuho have already conducted pilot programs involving tokenized stocks and Japanese government bonds. (CoinDesk)