Japan's Financial Services Agency (FSA), the finance ministry and the central bank are planning to develop a national blockchain-based settlement infrastructure for stocks and Japanese government bonds (JGBs), the Nikkei reported Wednesday.
The initiative involves three key Japanese institutions: the FSA, which regulates financial markets; the finance ministry, which oversees fiscal policy and government debt issuance; and the central bank, which manages monetary policy and settlement systems. Their joint involvement points to a coordinated approach at the national level to modernize how securities are settled in Japan.
The report describes plans for a national settlement infrastructure that would use blockchain technology to process transactions involving stocks and JGBs, the debt instruments issued by the Japanese government to finance its operations.
Further details on the timeline, structure or scope of the planned study group were not disclosed in the report.
