Japan is planning to modernize its bond market using blockchain technology, with a launch expected in the early 2030s. The government, in partnership with the Financial Services Agency, the Ministry of Finance, and the Bank of Japan, will begin work this summer, with a development plan expected by early 2027. This new infrastructure would reduce settlement time for transactions to near zero, currently taking two days for stocks and one day for Japanese government bonds. The stakes are substantial: approximately 1,166 trillion yen in outstanding government bonds and bills, worth roughly $7 trillion at current exchange rates. This transition comes as the 10-year JGB yield approaches 2.9 percent and markets price an 80 percent chance of a Bank of Japan rate hike next month.
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