MUFG launches PoC for onchain JGB repo transactions on Canton Network
13 August 2026 Japan
Image: NAZMULHASAN/stock.adobe.com
Four MUFG companies, alongside Digital Asset and Progmat, have collaborated on a proof-of-concept (POC), bringing Japanese government bond (JGB) repo transactions onchain via Canton Network.
The companies are: Mitsubishi UFJ Financial Group, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank.
According to Digital Asset, the POC is designed to provide operational efficiency through automation of the full repo transaction lifecycle, and improved funding and capital efficiency through real-time intraday repo transactions and expanded settlement window.
The initiative reflects the growing issuance of security tokens backed by bonds, real estate, and other assets, in Japan鈥檚 primary market, and the advancement of overseas PoCs that bring secondary鈥憁arket financial transactions onchain, including projects for intraday government bond repo transactions in Europe and the US.
Digital Asset notes that continuing to provide JGB liquidity and settlement鈥憆elated services onchain is important for market development and investor convenience.
The firm plans to engage with relevant authorities, MUFG, and work with domestic and overseas financial institutions as the PoC advances.
The project forms part of pilot initiatives selected in February 2026 under the Payment Innovation Project led by the Financial Services Agency.
The PoC includes onchain simultaneous settlement of JGBs and digital money, with the use of tokenised deposits or stablecoins under consideration.
The structure maintains the legal nature of JGBs as book鈥慹ntry transfer bonds by updating the transfer registration ledger in conjunction with blockchain records.
The PoC also features onchain implementation of the full repo transaction lifecycle using Secured AV狼鈥檚 lending protocol.
Digital Asset will provide the tokenisation framework built on Canton Network and support token issuance and management.
Meanwhile, Progmat will analyse existing practices and support productisation for applying blockchain technology to JGB book鈥慹ntry transfers and repo transactions.
The companies are: Mitsubishi UFJ Financial Group, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank.
According to Digital Asset, the POC is designed to provide operational efficiency through automation of the full repo transaction lifecycle, and improved funding and capital efficiency through real-time intraday repo transactions and expanded settlement window.
The initiative reflects the growing issuance of security tokens backed by bonds, real estate, and other assets, in Japan鈥檚 primary market, and the advancement of overseas PoCs that bring secondary鈥憁arket financial transactions onchain, including projects for intraday government bond repo transactions in Europe and the US.
Digital Asset notes that continuing to provide JGB liquidity and settlement鈥憆elated services onchain is important for market development and investor convenience.
The firm plans to engage with relevant authorities, MUFG, and work with domestic and overseas financial institutions as the PoC advances.
The project forms part of pilot initiatives selected in February 2026 under the Payment Innovation Project led by the Financial Services Agency.
The PoC includes onchain simultaneous settlement of JGBs and digital money, with the use of tokenised deposits or stablecoins under consideration.
The structure maintains the legal nature of JGBs as book鈥慹ntry transfer bonds by updating the transfer registration ledger in conjunction with blockchain records.
The PoC also features onchain implementation of the full repo transaction lifecycle using Secured AV狼鈥檚 lending protocol.
Digital Asset will provide the tokenisation framework built on Canton Network and support token issuance and management.
Meanwhile, Progmat will analyse existing practices and support productisation for applying blockchain technology to JGB book鈥慹ntry transfers and repo transactions.
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