Japan to launch blockchain-based 24/7 settlement system

Japan plans a blockchain-based, 24/7 settlement system for stocks and bonds, aiming for early 2030s rollout to boost efficiency and security in financial markets.

Japan is advancing plans to implement a blockchain-based infrastructure for real-time, 24-hour settlement of stocks and government bonds. This initiative is being led by the Financial Services Agency, Ministry of Finance, Bank of Japan, and major financial institutions. A study group will be launched this summer to explore the system's development. A detailed development plan is expected by early 2027, with the system potentially becoming operational in the early 2030s. The new platform aims to replace the current multi-day settlement cycles with instant transactions, reducing settlement times to near zero and enabling immediate reinvestment of funds. This modernization is anticipated to boost efficiency, security, and competitiveness in Japan's financial markets. Major Japanese banks have already begun blockchain trials for government bond collateral, and the initiative may be included in a strategic investment framework starting fiscal 2027. The move highlights Japan's commitment to adopting innovative technologies in its financial sector.