Japan To Proceed With Stock And Bond Tokenization

Japan To Proceed With Stock And Bond Tokenization

Wed, August 26, 2026 at 5:04 PM GMT+3 1 min read

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Japan plans to proceed with a national blockchain-based settlement infrastructure for tokenized versions of stocks and Japanese government bonds.

Japan's financial regulator, the Bank of Japan, and major financial institutions are collaborating on the tokenization project.

Work on the project is expected to begin in early 2027, with operation of the new onchain system likely to begin in the early 2030s, according to media reports.

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The plan is to get banks to convert a portion of the reserve accounts they hold at the Bank of Japan into digital tokens.

The digital tokens would function as a wholesale central bank digital currency (CBDC), a digital representation of the local currency used only between financial institutions in the country.

The plan to move into tokenized assets comes as nearly 80% of Japanese institutional investors reportedly plan to allocate to cryptocurrencies within three years.

It also comes as the Bank of Japan has expanded its blockchain settlement network and moves forward with plans for a central bank digital currency (CBDC).

The Bank of Japan is also involved with "Project Agorá," a Bank for International Settlements initiative that brings together seven central banks and more than 40 financial institutions to test tokenized cross-border payments.

Bitcoin (CRYPTO: $BTC) is trading at $78,400 U.S. on Aug. 26.