Japan Plans 24/7 Blockchain Settlement for Bonds, Stocks

Japan plans a next-generation, 24/7 blockchain-based settlement system for real-time trading of stocks and Japanese government bonds, with a study group to be formed this summer and a detailed development plan expected by early 2027. If pursued, the project could enter service in the early 2030s, potentially as part of a multiyear strategic framework starting in fiscal 2027. The system would convert some BOJ accounts into digital tokens for interbank settlements, effectively creating a central bank digital currency for interbank use. Today’s settlements typically occur two business days after trades for stocks and next-day for bonds, so real-time settlement would reduce counterparty risk and free up capital. Large banks and securities firms are already piloting tokenized stocks and bonds, and the initiative aims to provide the underlying settlement layer and enable cross-border payments. The move positions Japan alongside global efforts to modernize financial infrastructure with blockchain-enabled efficiency.