Bessent’s bond gambit echoes Japan’s decades-long debt trap
NEW YORK — The moment the US debt crossed US$40 trillion, it stopped being a number and became a gravitational force — one powerful enough to bend Asia’s bond markets, currencies and policy priorities. Officials in Tokyo know this better than anyone. After decades of wrestling with its own debt‑heavy equilibrium, Japan offers a preview […] The post Bessent’s bond gambit echoes Japan’s…
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.
This story
This is one outlet's version. Read the fullest account.
