Japan weighs blockchain fast lane for securities cash settlement
The FSA, Finance Ministry, BOJ and financial institutions plan to study the infrastructure and produce a development plan by early 2027.
Japan is considering a blockchain-based system to enable instant cash settlement of securities trades, according to a report by Nikkei. The Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions plan to form a study group this summer to develop the infrastructure and determine responsibilities.
The system, if approved, could begin operating as early as the 2030s. Current Japanese securities trades settle on T+2, while government bond trades settle on T+1. The proposed blockchain system would convert some bank deposits in Bank of Japan accounts into digital tokens for interbank settlement.
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