Japan eyes blockchain for instant stock, government bond settlement, Nikkei reports

Japan eyes blockchain for instant stock, government bond settlement, Nikkei reports

Tue, August 25, 2026 at 9:50 PM GMT+3 1 min read

Aug 26 (Reuters) - Japan is preparing to set up a payment infrastructure to enable instantaneous ‌settlement of transactions in stocks and Japanese ‌government bonds using blockchain technology, the Nikkei newspaper reported on ​Wednesday.

The Financial Services Agency, the Ministry of Finance, the Bank of Japan and financial institutions will launch a study group this summer and are expected ‌to formulate a ⁠development plan around the beginning of 2027 at the earliest, the report said.

The ⁠plan is expected to cover the design of the blockchain to be used, the division of ​responsibilities among ​agencies and institutions, and ​a road map for ‌future work, it added.

Operations could begin within a few years, with the system potentially up and running in the early 2030s, if the plans are formally approved, the report said.

The instant payment ‌system could also extend to ​international remittances, the report added.

In ​Japan, cash settlement ​for stock trades occurs two days ‌after execution, while JGB transactions ​are settled ​the day after.

A real-time settlement system would bridge the gap between a trade and its ​cash settlement, ‌allowing investors to reinvest proceeds from asset sales ​almost simultaneously.

(Reporting by Sherin Sunny in Bengaluru; ​Editing by Leroy Leo)