Japan · The Block
Japan to work on blockchain-based stock settlement system, details expected early 2027: Nikkei
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Japan's top financial regulatory agencies are reportedly working to establish a blockchain-based payment infrastructure for stocks and Japanese government bonds.
Key facts
- In July, Japan passed amendments to the Financial Instruments and Exchange Act (FIEA) to reclassify roughly 105 cryptocurrencies as financial instruments, which is set to take effect during fiscal
- Backed by the FSA, the country's three major banks, Mizuho Bank, MUFG, and SMBC, are also working on a stablecoin pilot project to innovate payment systems with blockchain
- On the same day, roughly 40 regional and online banks in Japan announced that they will launch a proof-of-concept for interbank transfers using tokenized deposits, with testing set to begin as early
- In April, Japan Securities Clearing Corporation, a clearing house owned by Japan Exchange Group, launched a trial in partnership with Mizuho, Nomura, and Digital Asset to explore using Japanese
Summary
The Financial Services Agency, the Ministry of Finance, and the Bank of Japan will jointly work with local institutions starting this summer to establish a development plan around the next-generation payment system, Nikkei Asia reported on Wednesday. The plan, expected as early as the beginning of 2027, will detail the blockchain's design, specify agency and institutional responsibilities, and outline a roadmap for future work, according to the report. If the plan is approved, the agencies could launch the system within a few years and have it fully operational in the early 2030s, per the report. The main aim of this project is to accelerate the stock and government bond settlement to real-time speed from two days.