Japan Plans Blockchain-Based Stock Settlement System, Details Due Early 2027

Japan’s Financial Services Agency, Ministry of Finance, and Bank of Japan are jointly developing a blockchain based settlement system for stocks and government bonds, with a detailed plan expected by early 2027. The initiative aims to shift settlement times from the current two-day process to real time transactions by tokenizing a portion of bank accounts held at the Bank of Japan.

Long-Term Rollout Planned Through the 2030s

If approved, the system could launch within a few years and become fully operational in the early 2030s, potentially falling under Japan’s upcoming multi-year strategic investment framework starting in fiscal 2027. Separately, around 40 Japanese banks announced plans to begin testing tokenized deposits for interbank transfers as early as this month.

Part of a Broader National Push Toward Digital Assets

This effort builds on Japan’s recent regulatory momentum, including new legislation reclassifying roughly 105 cryptocurrencies as financial instruments and reducing crypto tax rates significantly starting in fiscal 2027. The country has also seen growing private sector adoption, including trials involving government bonds as blockchain collateral and stablecoin pilot programs backed by major banks like Mizuho, MUFG, and SMBC.