Japan’s Ministry of Finance has set up a new study group to examine whether government bond transactions could be settled instantly on blockchain infrastructure, according to Reuters. The first meeting is scheduled for Oct. 8. The group will review the pros and cons of moving away from the current next-day settlement convention and assess how real-time settlement could work in practice.
Participants include professors from the University of Tokyo and Waseda University, along with private-sector strategists. The Bank of Japan and the Financial Services Agency will also join discussions as part of the opinion-sharing process. A finance ministry official said U.S. money market fund products backed by Treasuries and traded on blockchain networks will serve as an important reference point. The ministry expects the group to organize its key discussion points within this year.
Japan’s Ministry of Finance has established a study group to examine the feasibility of instant settlement for government bond transactions using blockchain, Reuters reported. Its first meeting is set for Oct. 8.
The group, called the "on-chain response study group," will review the advantages and disadvantages of blockchain-based real-time settlement against Japan’s current next-day settlement practice for government bonds. Members include professors from the University of Tokyo and Waseda University, as well as private-sector strategists. The Bank of Japan and the Financial Services Agency will also take part in exchanges of views.
A ministry official said U.S. money market fund products backed by government bonds and traded on blockchain will be used as an important reference case. The study group plans to organize its discussion points within the year.
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