Japan Plans to Build Blockchain Real-Time Settlement System Covering Stock and Bond Trading

BlockBeats News, August 26th. According to Nikkei News, Japan is planning to establish a blockchain-based payment infrastructure to achieve real-time settlement of stock and Japanese government bond transactions. The Financial Services Agency, Ministry of Finance, Bank of Japan, and related financial institutions will launch a study group this summer, with the earliest development plan expected to be formulated by early 2027. The plan will cover aspects such as blockchain design, division of responsibilities among the institutions, and a future roadmap. If the plan receives official approval, the system is expected to be built in the next few years, possibly operational as early as the beginning of the 2030s, and may eventually expand to the field of international remittances.

Currently, cash settlement for stock trading in Japan is completed two days after the transaction, while government bond transactions settle on the next day. A real-time settlement system will eliminate the time gap between trading and fund settlement, allowing investors to almost reinvest their proceeds at the same time they sell the asset.