Japan Pushes Blockchain-Based Real-Time Settlement for Stock, Bond Trades

Japan is moving to introduce a blockchain-based system for real-time settlement of stock and bond trades, aiming to cut settlement times and improve the efficiency of financial-market infrastructure.

Nikkei reported on Aug. 25 that Japan’s Financial Services Agency, the Finance Ministry, the Bank of Japan and financial institutions plan to launch a study group this summer to begin discussions on a blockchain-based real-time securities settlement system.

The group will examine ways to exchange cash and securities in real time via blockchain after stock and bond trades are executed. The goal is to shorten a securities settlement process that currently takes time to complete.

A detailed development plan may be drawn up as early as the start of 2027. Authorities are also considering beginning operations within the following few years and building a broader settlement system by the early 2030s.