Japan's Ministry of Finance Establishes "On-chain Response Research Committee" to Advance Exploration of Instant Government Bond Settlement

According to Reuters, Japan's Ministry of Finance announced on September 30 the establishment of the "On-Chain Research Group," focusing on the feasibility of real-time settlement for government bond transactions, with its inaugural meeting scheduled for October 8. The group will systematically outline the advantages and disadvantages of blockchain-based instant settlement relative to current T+1 settlement conventions. Members will include professors from academic institutions such as the University of Tokyo and Waseda University, alongside private sector strategists, and will involve the Bank of Japan and the Financial Services Agency to participate in exchanging views. A senior official at the Ministry of Finance noted that existing U.S. MMF products backed by government bonds and traded on blockchain will serve as important reference cases. The research group plans to consolidate its findings on the topic by the end of the year.