Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
YS
Yayang Syarif Hidayat26 August 2026, 17:40 WIB
YS
Yayang Syarif Hidayat
×
WhatsApp Channel
Japan is exploring blockchain for instant stock settlement, aiming for full operation by early 2030.
JAKARTA – The Japanese government and capital market regulators are exploring the use of blockchain technology to accelerate the settlement system for stock and government bond (JGB) transactions to instantaneous.
Quoting Reuters, this initiative highlights the national financial infrastructure modernization plan led by the Financial Services Agency (FSA), the Ministry of Finance, and the Bank of Japan (BOJ).
The Japanese government plans to launch a study group in the summer of 2026 to design the next-generation payment system. This group, bringing together regulators and financial institutions, aims to develop a technical development plan by early 2027.
The primary goal is to implement a real-time asset settlement system that can operate 24 hours a day, unrestricted by exchange operating hours.
Currently, stock transaction settlement in Japan takes up to two business days or a T+2 scheme, while government bonds (JGBs) are settled in one business day (T+1).
With blockchain adoption, the time gap between trade execution and fund receipt can be eliminated. Investors will be able to receive cash from asset sales almost simultaneously and immediately redeploy that capital into other instruments.
The concept of this system involves converting central bank deposit balances into digital tokens that can circulate on a blockchain network. This payment mechanism mimics the concept of Central Bank Digital Currency (CBDC), but is specifically designed for inter-institutional settlement.
The scale of opportunity in the Japanese market is massive. Citing Ministry of Finance data, the total value of outstanding bonds and debt securities in Japan reaches 1,166 trillion yen, or about US$7 trillion.
Several major banks, such as Mitsubishi UFJ Financial Group (MUFG), have already conducted initial trials for blockchain-based bond transactions since 2026.
If the plan is approved, preparations for system operations are expected to begin in the next few years, with the target for the system to be fully operational by the early 2030s.
Source: www.idnfinancials.com