Japan is preparing to build a blockchain-based payment infrastructure designed to enable instant settlement of stock and Japanese government bond transactions, according to a report by the Nikkei newspaper published on Wednesday.
According to Investing.Com, the initiative will bring together the Financial Services Agency, the Ministry of Finance, the Bank of Japan and a range of financial institutions, which are set to form a joint study group this summer to examine how such a system could work in practice.
According to the report, the group is aiming to produce a development plan by the start of 2027 at the earliest.
That plan is expected to address the technical design of the blockchain network itself, how responsibilities would be divided between the public bodies and market participants involved, and a broader road map setting out the steps needed to bring the project to life.
Should the proposals ultimately win formal approval, operations could get under way within a handful of years, with a full launch pencilled in for sometime in the early 2030s. The report also notes that the ambitions extend beyond domestic markets, with the instant settlement system potentially being widened to cover cross-border remittances as well.
The push for faster settlement reflects long-standing friction in Japan’s market infrastructure. At present, cash settlement of stock trades in Japan is completed two days after execution, while Japanese government bond transactions settle a day after the trade takes place.
Copyright © 2026 FinTech Global
