All banks in Japan use those accounts for interbank payment settlement
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The new infrastructure would cut both to near-zero, allowing investors to reinvest proceeds almost immediately.
Key facts
- The BOJ is also involved in Project Agorá, a Bank for International Settlements (BIS) initiative that brings together seven central banks and more than 40 financial institutions to test tokenized
- The Japanese Financial Services Agency (FSA), the Ministry of Finance and the Bank of Japan this summer plan to launch a group, which aims to begin work by early 2027
- MUFG said earlier this month that it is preparing a proof of concept for onchain JGB settlement using the Canton Network
- Nearly 80% of Japanese institutional investors plan to allocate to crypto within three years, according to a survey by Nomura and Laser Digital published in April
Summary
Japanese regulators, the Bank of Japan and financial institutions plan to develop a national blockchain-based settlement system for stocks and government bonds, with work expected to begin by early 2027 and operations potentially starting in the early 2030s. The system would use tokenized central bank reserves as a wholesale digital currency, reducing settlement times for stock and government bond trades to nearly zero. The initiative builds on blockchain pilots by Japan’s largest banks and could support tokenized cross-border payments as the United States and Europe modernize their capital markets. Japan's financial regulators, the Bank of Japan (BOJ) and major financial institutions are planning to develop a national blockchain-based settlement infrastructure for stocks and Japanese government bonds (JGBs), the Nikkei reported Wednesday. The Japanese Financial Services Agency (FSA), the Ministry of Finance and the Bank of Japan this summer plan to launch a group, which aims to begin work by early 2027.