News Summary

• Japanese equities settle in two business days and government bonds in one.
• Portions of the balances banks hold at the Bank of Japan would be converted into digital tokens on a blockchain network.
• Officials want to keep Japanese markets competitive as the United States and Europe build out tokenised securities infrastructure.
• The domestic system could serve as a foundation for international payment applications through the Bank for International Settlements blockchain pilots that already involve Japan, Europe, and other jurisdictions.
• It is not a pilot on a peripheral instrument but a proposal to rebuild settlement for the securities that anchor the country’s financial system.