Japan explores 24/7 blockchain settlement for national markets

The proposal, reported by Nikkei, involves a collaborative effort between the Financial Services Agency, the Ministry of Finance, the Bank of Japan, and major financial institutions. A formal study group is expected to convene in the summer of 2026, targeting an initial development roadmap by early 2027. If approved, the infrastructure could reach operational status by the 2030s.

Currently, Japanese equity markets rely on a T+2 settlement cycle, while government bonds typically settle the following business day. Transitioning to real-time blockchain settlement would allow investors to access sale proceeds instantly, though the shift introduces complex liquidity requirements. Participants must balance the benefit of reduced counterparty risk against the challenge of securing assets without the buffer of existing settlement delays.

This project builds upon ongoing Bank of Japan experiments with tokenized central-bank deposits, which explore delivery-versus-payment mechanisms for interbank transfers. While private sector entities like Progmat and SBI Holdings have already launched blockchain-based platforms for tokenized assets, the government’s proposed framework seeks to integrate these capabilities into the mainstream financial system. Success depends on the study group resolving critical hurdles, including cybersecurity, transaction privacy, and the governance of a system that never sleeps.