Japan's Securities Sector Embraces Digital Transformation
Nomura Holdings and Daiwa Securities Group have announced a collaboration with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group to launch a pilot program exploring blockchain-based securities trading using yen-pegged stablecoins.
Enabling 24/7 Real-Time Settlement
The initiative aims to leverage blockchain to enable round-the-clock settlement, replacing the traditional multi-day process with instant transfers of both funds and asset ownership using a yen-linked digital currency.
Digital Securities Covering Multiple Asset Classes
The pilot will include digitized versions of stocks, government bonds, corporate bonds, investment trusts, and ETFs. Investors will be able to execute trades through broker platforms with immediate settlement via stablecoins, significantly improving capital efficiency.
Compliance Remains Key Hurdle
While blockchain offers transparency and security benefits, integrating the technology with existing financial infrastructure poses operational and regulatory challenges, particularly around transaction verification and compliance frameworks.
Pathway to Industry-Wide Adoption
Expected to notify Japanese regulators this month before launching, the pilot could pave the way for broader participation from financial institutions if successful, marking a significant step toward modernizing securities market infrastructure.