Regulators and financial institutions aim to launch a blockchain-based cash settlement system for stocks and bonds by the early 2030s.
Japanese regulators, including the Financial Services Agency and Bank of Japan, are exploring a blockchain-based system to enable instant cash settlement of securities transactions around the clock. The initiative targets stock and Japanese government bond trades, currently settling on T+2 and T+1 cycles, respectively.
A study group will form this summer to outline infrastructure development, assign responsibilities, and draft a plan by early 2027. The system would convert bank deposits in BOJ current accounts into digital tokens for blockchain-based interbank settlement. Formal approval could see operations begin in the early 2030s.
The move follows Japan’s broader push to modernize financial infrastructure, including recent approvals for crypto exchanges.