Nomura, Daiwa to Pursue Stablecoin-Settled Securities Trading with Japan’s Top Three Financial Groups

Japan’s Nomura Holdings and Daiwa Securities Group are moving to build securities settlement and trading infrastructure using stablecoins together with Japan’s top three financial groups.

According to Nikkei Asia on the 11th (local time), Nomura Holdings and Daiwa Securities Group, in collaboration with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group, are pursuing a securities trading platform based on fiat-pegged stablecoins. Following notification to financial regulators, they plan to begin a pilot operation as early as this month using stablecoins to be co-issued.

The project aims to convert equities, Japanese government bonds, corporate bonds, investment trusts, exchange-traded funds and money market funds into digital securities and enable 24/7 real-time settlement on blockchain. Under the structure, when an investor places a buy order through a securities firm, payment is settled in stablecoins and ownership is transferred immediately.

Japan currently maintains a system under which securities trades are settled two business days after the trade date. The United States shifted to next-business-day settlement in 2024, and shortening settlement cycles is also being discussed in parts of Europe and Asia. The introduction of blockchain-based real-time settlement could enable round-the-clock, year-round trading without the burden of time differences, the report said.

However, challenges remain, including building an order verification framework and putting legal requirements in place, and the companies plan to use the pilot to assess institutional and technical hurdles.

Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group are also preparing to issue yen-pegged stablecoins. Resona Holdings and credit card company JCB are pursuing a plan to introduce stablecoins for retail payments from fiscal 2027.