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Japan plans blockchain system for around-the-clock securities cash settlement
The plan would be developed by early 2027 by a study group involving the FSA, Ministry of Finance, the BOJ, and financial institutions, with equity settlement at T+2 and bond settlement at T+1 as the current baseline.
Japan is preparing a blockchain-based system aimed at enabling immediate cash settlement for stock trades and Japanese government bond transactions at any time of day, according to Cointelegraph citing Nikkei.
The Financial Services Agency, the Ministry of Finance, the Bank of Japan, and financial institutions plan to form a study group this summer to assess the infrastructure, determine how it should be built, and split responsibilities among public agencies and market participants.
The group is expected to produce a development plan in early 2027. The concept would convert some deposits that banks hold in BOJ current accounts into digital tokens that could circulate on the blockchain for interbank settlement.
Current market settlement timing differs by asset class in Japan, with regular equity trades settling on T+2 and domestic government bond trades settling on T+1.
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