Japan to Explore 24/7 Blockchain Settlement for Stocks and Government Bonds

Japanese regulators, the Finance Ministry, the Bank of Japan (BOJ) and major financial institutions will form a study group in summer 2026 to assess a blockchain settlement platform for publicly traded stocks and government bonds.

Study timeline and goals

The group aims to deliver an initial development plan by early 2027. If approved, the system could become operational in the early 2030s. The roadmap will cover blockchain architecture, the division of responsibilities between public and private participants, and a timetable for implementation.

Current settlement landscape

Stock trades in Japan settle on a T+2 schedule (two business days after the trade), while government bond transactions settle the next business day. A blockchain‑based infrastructure would link securities transfer with cash payment more tightly, potentially allowing investors to receive proceeds and reinvest almost immediately.

BOJ’s existing blockchain work

The BOJ already runs a sandbox that tests settlement using tokenized central‑bank current‑account deposits. The pilot explores wholesale central bank digital currency (CBDC) concepts and delivery‑versus‑payment mechanisms, separate from the retail digital‑yen project.

Private sector activity

Japanese firms have launched tokenized‑securities platforms, such as Progmat’s Avalanche‑based network handling ¥452 billion of assets and the SBI‑Startale joint Strium network, which plans a public testnet in 2026 for round‑the‑clock tokenized securities trading.

Key considerations

• Governance and cybersecurity of a continuous‑operation ledger.
• Transaction privacy and operational resilience.
• Liquidity and operational requirements for participants when settlement windows are eliminated.
• Potential expansion to other use cases, such as international remittances.