Japan is reportedly moving closer to a blockchain-based settlement system for stocks and government bonds. According to Nikkei, the Financial Services Agency, the Ministry of Finance, and the Bank of Japan are expected to set up a study group in summer 2026. The group would produce an initial development plan in early 2027. None of the three institutions had published a formal announcement as of Wednesday.
Why Japan wants faster settlement
Japanese stocks currently settle on a T+2 basis. Cash moves two business days after a trade. Government bonds usually settle on the next business day. A blockchain system could bring securities transfer and cash payment much closer together. Investors might get sale proceeds faster and put the money back to work quickly.
But real-time settlement is not just about speed. It shortens the time counterparties are exposed to each other. That lowers settlement risk. At the same time, it leaves less room to arrange cash or securities before a transaction completes. Banks and brokers would need new liquidity and operational processes.
The BOJ’s existing experiments
The reported plan builds on work the Bank of Japan has already been doing. Governor Kazuo Ueda said in March the central bank was testing settlements using commercial banks’ current account deposits on blockchain. Later, Executive Director Kazushige Kamiyama described it as an examination of tokenized central-bank account deposits, sometimes called wholesale CBDC. The design could support delivery-versus-payment settlement, where securities and cash move simultaneously.
That work is separate from Japan’s retail digital yen pilot. The BOJ is still researching a retail CBDC, but the government has not decided whether to issue one.
Private tokenized securities already exist
Japan’s private sector is not waiting. Progmat says it migrated 452 billion yen in managed tokenized securities to a dedicated Avalanche network. SBI Holdings and Startale are building Strium, a blockchain for round-the-clock tokenized securities trading, with a public test network planned for 2026. The three largest banks are also working on a shared yen stablecoin framework, targeting live transactions by March 2027.
These private projects show that tokenized issuance and transfer can work. The government proposal is broader because it would touch mainstream equities, government debt, and central-bank money.
Open questions remain
The study group still needs to decide whether Japan should build a new blockchain, connect several regulated networks, or link distributed ledgers with existing market systems. It also has to handle governance, cyber security, privacy, operational resilience, and ways to reverse mistaken transfers. Running a system 24/7 would require support from financial institutions and regulators beyond normal market hours.
Nikkei says the infrastructure could start operating in the early 2030s, if the plan is approved. But no final decision has been announced. The next real milestone is an official announcement naming the institutions and the group’s mandate. Until then, the timeline is a reported target, not a confirmed government deadline.
