
MUFG launches blockchain pilot for on-chain Japanese government bond transactions
Mitsubishi UFJ Financial Group (MUFG) has initiated a proof of concept to migrate Japanese government bond (JGB) repo transactions onto the Canton Network blockchain. This pilot, conducted under Japan's Financial Services Agency Payment Innovation Project, involves key partners including Mitsubishi UFJ Morgan Stanley Securities, Digital Asset Holdings, Progmat, and Secured Finance. The project aims to enable on-chain delivery-versus-payment settlement using tokenized JGBs alongside either tokenized deposits or stablecoins. By leveraging smart contracts, the initiative seeks to automate the repo transaction lifecycle, thereby improving operational efficiency and enabling real-time intraday settlements. The effort addresses the significant demand for liquid, high-quality collateral in on-chain formats by institutional market participants. The first phase focuses on settlement mechanics, while the second phase will target full lifecycle automation via a lending protocol. This development marks a significant step in integrating traditional Japanese financial infrastructure with distributed ledger technology to enhance capital efficiency.









