Japan Plans to Reconstruct Securities Settlement with Blockchain, Accelerating the "On-Chain" Adoption of Traditional Finance
On August 26th, it was reported that Japan is preparing to establish a blockchain-based payment infrastructure to achieve instant settlement of stock and Japanese government bond transactions. The Financial Services Agency, the Ministry of Finance, the Bank of Japan, and financial institutions will launch research this summer, with a development plan expected to be finalized as early as the beginning of 2027. If approved, the system could be operational by the early 2030s.
The core of Japan's push for this plan is to reduce the capital tied up, liquidity, and counterparty risks associated with traditional settlement cycles. Currently, Japanese stocks use T+2 settlement and government bonds use T+1, while blockchain is expected to bring transactions and fund settlement closer to synchronization, allowing funds to flow back to the market more quickly. For the crypto industry, this means that the value of blockchain is extending from a "digital asset trading tool" to the underlying infrastructure of traditional finance.
More noteworthy is that Japan may also expand this system to the field of international remittances in the future. Recently, India also planned to issue tokenized corporate bonds and use blockchain to achieve instant settlement, showing that the global financial market is gradually moving from experimental tokenization to real financial infrastructure. In the future, stocks, bonds, payments, and even cross-border capital flows may all become application scenarios for blockchain to reshape the traditional financial system.
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