Japan eyes blockchain for instant stock, government bond settlement: Report
The instant payment system could also extend to international remittances, the Nikkei report said.
TOKYO - Japan is set to develop a payment infrastructure that would enable instant settlement of stock trades and government bond transactions through blockchain technology, according to a report in the Nikkei newspaper on August 26th. The Financial Services Agency, the Ministry of Finance, the Bank of Japan, and various financial institutions are teaming up to form a study group this summer, with the aim of crafting a development plan by the beginning of 2027 at the latest, the report stated.
The plan is anticipated to encompass the design of the blockchain system to be employed, the distribution of roles among relevant agencies and institutions, and a roadmap for ongoing efforts. If approved, the system could be operational within a few years, potentially becoming fully functional in the early 2030s, the report added.
Currently, cash settlement for stock trades takes place two days after execution in Japan, while government bond transactions settle the day following the transaction. An instant settlement system would streamline the process, allowing investors to reinvest the proceeds from asset sales almost immediately, according to the report.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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