Japan eyes 24/7 blockchain settlement for stocks, JGBs

Japan is preparing to study a blockchain settlement system capable of processing stock and government bond transactions around the clock, according to an Aug. 26 report from Nikkei. Summary Japan plans a study group examining blockchain settlement for government bonds and publicly traded stocks. Financial regulators, the Finance Ministry, BOJ and financial institutions would participate under the reported proposal. A development plan could arrive in early 2027, with operations potentially beginning during the 2030s. Japanese stock transactions currently settle after two days, while government bond trades settle next-day domestically. BOJ already operates a sandbox testing blockchain settlement using central-bank current account deposits for institutions. The Financial Services Agency, Ministry of Finance, Bank of Japan and participating financial institutions are expected to establish a study group during summer 2026. The group would aim to complete an initial development plan in early 2027. None of the three government institutions had published a formal announcement confirming the reported study group when checked Wednesday. Japan’s blockchain settlement plan targets existing del...