Four MUFG Group Companies Launch Japan's First Domestically Domiciled Tokenized Investment Fund in Live Production Test, Deploying ¥200 Million in Short-Term JGBs
Four Mitsubishi UFJ Financial Group-affiliated companies, including Progmat and Mitsubishi UFJ Asset Management, have launched a proof-of-concept for Japan's first domestically domiciled tokenized investment trust. The fund, established on August 31 with ¥200 million in proprietary capital, invests in short-term Japanese government bonds to test operational workflows in a live production environment. While beneficiary rights remain legally tied to paper certificates, the registry is managed on a blockchain to identify practical challenges in NAV calculation and redemption processes. This initiative aims to bridge the gap between Japan's growing digital money ecosystem, such as stablecoins and tokenized deposits, and the necessary on-chain investment assets. By operating within current legal constraints, the consortium intends to provide empirical data to inform future legislative amendments and industry standards. The project highlights the critical need to align the 'asset side' of tokenization with the 'money side' to enable advanced use cases like collateralization and Delivery versus Payment. This milestone represents a significant step in maturing Japan's on-chain financial infrastructure by addressing institutional hurdles through real-world application.
- MUFG-affiliated firms launched Japan's first domestically domiciled tokenized investment trust proof-of-concept.
- The ¥200 million fund invests in short-term Japanese government bonds for live operational testing.
- Progmat and partners are testing on-chain registry management despite existing paper-based legal requirements.
- The project aims to integrate tokenized assets with digital money for future collateral and settlement.
Progmat is a Japanese digital asset infrastructure platform originally developed by MUFG to facilitate the issuance and management of security tokens and stablecoins. It provides the technical framework for financial institutions to tokenize various assets, aiming to create a unified ecosystem for digital securities and programmable money within the Japanese regulatory environment.