Japan to implement blockchain settlement for stocks and government bonds

blockchain settlement tokenized deposits securities trading Bank of Japan financial infrastructure

Japan is planning to modernize its financial infrastructure by implementing a blockchain-based system for the real-time settlement of stocks and Japanese government bonds (JGBs). A study group comprising the Financial Services Agency, Ministry of Finance, Bank of Japan, and various private financial institutions is expected to be established this summer.

The initiative aims to transition from current settlement cycles—T+2 for stocks and T+1 for government bonds—to a 24/7 immediate settlement model. A central component of this proposal is the tokenization of Bank of Japan current account deposits, which would allow for near-instantaneous interbank settlements and simultaneous delivery-versus-payment (DVP) of securities.

The study group intends to finalize a development plan by early 2027, with the goal of having the system operational in the early 2030s. This move is seen as a strategic effort to maintain the competitiveness of Japan's financial markets against international trends toward digital asset integration. Additionally, some private banks, such as Mitsubishi UFJ Financial Group, are already conducting proofs-of-concept for blockchain-based bond transactions.

Entities

Bank of Japan · Financial Services Agency · GMO Aozora Net Bank · Japan · Ministry of Finance · Mitsubishi UFJ Financial Group · SBI Holdings · Singapore

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The system will involve tokenizing Bank of Japan current account deposits for use in interbank settlements. bittimes.net · crypto-times.jp · www.neweconomy.jp
[● 5 SOURCES] Current Japanese stock transactions follow a T+2 settlement cycle, while government bonds follow a T+1 cycle. bitcoinethereumnews.com · www.cointrust.com · www.neweconomy.jp · blockchainseoul.kr · www.tokenpost.kr
[● 8 SOURCES] The blockchain-based settlement system is targeted to become operational in the early 2030s. bittimes.net · bitcoinethereumnews.com · crypto-times.jp · www.cointrust.com · www.neweconomy.jp · +3 more
[● 9 SOURCES] The study group aims to finalize a development plan by early 2027. bittimes.net · bitcoinethereumnews.com · crypto-times.jp · www.cointrust.com · www.neweconomy.jp · +4 more
[● 5 SOURCES] A study group involving the Financial Services Agency, Ministry of Finance, Bank of Japan, and private financial institutions will be established this summer. bittimes.net · bitcoinethereumnews.com · crypto-times.jp · www.cointrust.com · www.neweconomy.jp
[● 4 SOURCES] The infrastructure aims to enable 24/7 immediate settlement for stocks and government bonds. bittimes.net · bitcoinethereumnews.com · www.cointrust.com · www.neweconomy.jp