Japan wants stock and bond settlement to happen instantly, on a blockchain

Japan is testing a blockchain system that would settle stock and government-bond trades instantly by converting portions of banks’ balances at the Bank of Japan into digital tokens, creating a wholesale CBDC for interbank use. The Financial Services Agency, Ministry of Finance, Bank of Japan and the three largest banks are coordinating the project. A development roadmap will begin in early 2027, with an operational launch planned for the early 2030s. The system aims to reduce settlement risk and keep Japan competitive as tokenised securities infrastructure expands globally.