Japan plans blockchain-based real-time stock and bond settlements by 2030s

Japan’s Financial Services Agency, Finance Ministry, and the Bank of Japan are forming a study group this summer with the country’s largest financial institutions to explore replacing traditional securities settlement infrastructure with blockchain-based systems. The target: real-time, round-the-clock stock and bond settlements operational by the early 2030s. A development plan is expected by early 2027, with a comprehensive operational framework to follow in subsequent years. From T+2 to T+zero When you buy shares on the Tokyo Stock Exchange, the actual exchange of securities and cash doesn’t happen instantly. It typically takes two business days, a convention known as T+2. During that gap, counterparty risk lingers, capital sits locked up, and back-office systems grind through reconciliation processes. The initiative isn’t purely theoretical. Mitsubishi UFJ Financial Group, Japan’s largest bank, announced a proof-of-concept in August 2026 for on-chain Japanese Government Bond repo transactions using the Canton Network. The system is designed to enable near-instant settlements that run 24 hours a day, seven days a week, rather than only during traditional banking hours. MUFG isn’t...