Japan is developing a real-time settlement system for equity and government bond transactions based on blockchain technology. According to industry publications, the country's authorities expect to prepare a detailed project plan as early as the beginning of 2027.
The Financial Services Agency (FSA), the Ministry of Finance, the Bank of Japan, and representatives of the financial sector are all expected to participate in the initiative. As early as summer 2026, participants plan to establish a working group to define the blockchain system's architecture, the distribution of responsibilities among market participants, and the further infrastructure development roadmap. If final approval is granted, the new system could become fully operational in the early 2030s.
The introduction of blockchain technology is aimed at significantly reducing settlement delays. Currently, equity settlements in Japan take place two days after a transaction is executed (the T+2 standard), while Japanese government bond settlements occur the following day (T+1). Blockchain infrastructure is expected to nearly eliminate this delay, allowing sellers to receive funds and reinvest them almost immediately after a transaction is completed.
This is not Japan's first experiment with distributed ledgers in the financial market. In February 2026, the Financial Services Agency reported its support for a demonstration project in which rights to government and corporate bonds, investment funds, and equities are recorded on a blockchain, with transaction settlements carried out using stablecoins. The Bank of Japan is also conducting its own experiment involving tokenized central bank reserves for blockchain-based settlements and is considering this technology as one possible scenario for securities settlement.
The new initiative could elevate existing experiments to the level of national financial infrastructure. Looking ahead, Japanese authorities are also exploring the possibility of using such a system for cross-border transfers, which could enhance the country's competitiveness in global capital markets.
Industry observers note that the United States and European countries are showing more active development in the area of real-world asset (RWA) tokenization. According to market analytics, the total volume of the RWA segment (excluding stablecoins) stands at $38.3 billion, of which $15.6 billion is attributable to tokenized US government bonds. There is a risk that slower technological development could affect the attractiveness of Japanese securities markets to foreign investors and funds.
As an international reference point for tokenization technology, British analysts have forecast that the adoption of this technology could add up to £33 billion per year to the UK economy over a ten-year horizon. Such estimates underscore the economic potential of blockchain infrastructure for traditional financial markets.