$7 Trillion Japan Bond Market is Moving to the Blockchain

Japan's bond market is heading for a blockchain makeover. Nikkei reported this week that regulators want stocks and Japanese government bonds (JGBs) to settle instantly, around the clock.

While the country has run blockchain pilots before, this is the first time it has put dates on a national rollout.

Why Japan's Bond Market is Moving to Blockchain

The work starts this summer, with the Financial Services Agency (FSA), the Ministry of Finance, and the Bank of Japan expected to lead it.

Banks join them in a study group, with a development plan expected to land by early 2027. The system could go live in the early 2030s.

Today, a stock trade in Tokyo takes two days to settle, while a JGB trade takes one. The new rails would cut that to near zero. Sellers could reinvest their cash almost instantly.

The prize is huge, as Japan holds roughly 1,166 trillion yen in outstanding government bonds and bills, per Ministry of Finance figures. At current exchange rates, that is about $7 trillion.

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