Japan studies 24/7 blockchain settlement system

• Japan plans to study blockchain settlement for publicly traded stocks and government bonds.
• The proposed system could allow transactions around the clock and reduce settlement delays.
• A development plan could arrive in early 2027, with operations potentially starting in the 2030s.

Japan plans to study a blockchain system for 24/7 settlement of stocks and government bonds.

The Financial Services Agency, Finance Ministry, Bank of Japan and financial firms are expected to join the study group.

Japanese stocks currently settle two business days after trading, while government bonds generally settle the next business day.

The proposed system would link securities transfers more closely with corresponding cash payments.

The study group could complete an initial development plan in early 2027, according to the report.

The system could eventually support international payments, although no final implementation decision has been announced.

The Bank of Japan is already testing blockchain settlement using commercial banks’ current account deposits.