Japan to Study Blockchain for 24/7 Securities Cash Settlement by 2027

Japan's Financial Services Agency, Ministry of Finance, and Bank of Japan (BOJ) are preparing to launch a joint study group this summer to evaluate a blockchain-based settlement system for stock and government bond transactions, according to a Nikkei report. The initiative aims to replace the country's current T+2 equity settlement cycle and T+1 government bond settlement with near-instant, round-the-clock cash settlement. If formally approved, the system could go live as early as the 2030s.

The proposed infrastructure would convert a portion of commercial bank deposits held in BOJ current accounts into digital tokens capable of circulating on a blockchain network for interbank settlement. This approach would allow financial institutions to transfer funds continuously rather than waiting for traditional banking hours, significantly reducing counterparty and settlement risk across Japan's capital markets.

The study group, which will include major financial institutions alongside the three government bodies, is expected to define the technical architecture, assign responsibilities between public agencies and private firms, and deliver a formal development plan by early 2027. The effort comes amid a broader global push by central banks and regulators to modernize post-trade infrastructure using distributed ledger technology.

The move follows recent regulatory momentum in Japan's digital asset space, including the Financial Services Agency's approval of Laser Digital as the country's first crypto exchange operator in four years. Together, these developments signal Japan's accelerating effort to integrate blockchain infrastructure into both its traditional financial system and its growing digital asset economy.