Japanese Financial Giants Collaborate on Stablecoin-Based Securities Trading Pilot

Japanese financial institutions, including Nomura Holdings and Daiwa Securities Group, are collaborating with Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group to launch a pilot project for securities trading using stablecoins. According to PANews, the initiative aims to enable 24-hour real-time settlement on the blockchain. The project plans to digitize assets such as stocks, government bonds, corporate bonds, investment trusts, and ETFs into digital securities. Investors will place orders through brokerages, and transactions will be settled in real-time using yen-denominated stablecoins issued jointly by the three major banks, with asset rights transferred to the buyer simultaneously. The trial is expected to commence as early as this month, following notification to financial regulators, and may attract more financial institutions in the future. The project seeks to leverage blockchain's tamper-proof characteristics to support round-the-clock trading, extend trading hours, and shorten settlement cycles, thereby invigorating the markets for stocks, bonds, and investment trusts. However, the implementation faces compliance and operational challenges, such as verifying brokerage orders. The pilot will focus on identifying and addressing these obstacles.