Japan weighs blockchain fast lane for securities cash settlement
Summary
Japan is preparing a blockchain-based settlement system for stocks and Japanese government bonds that would allow instant, 24/7 cash settlement. The Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions plan to set up a study group this summer to design the infrastructure, assign responsibilities, and draft a development plan by around early 2027. If approved, the system could launch in the early 2030s. The model would tokenize some bank deposits held in BOJ current accounts so they can move on-chain for interbank settlement. Today, Japanese equities typically settle on T+2 and government bonds on T+1.
