Progmat and Digital Asset Reach Basic Agreement on Tokenizing Japanese Government Bonds, Eyeing 24/7 Settlement
RWA Signal Insight
Non-U.S. Govt. DebtProgmat and Digital Asset Holdings have entered a strategic partnership to enable the on-chain trading and settlement of Japanese government bonds (JGBs) using the Canton Network. This collaboration aims to create 'tJGBs,' which are tokenized government bonds that maintain their legal status under Japan's Book-Entry Transfer Act while enabling 24/7 programmatic settlement. By integrating Progmat’s issuance platform with the institutional-grade Canton Network, the firms intend to streamline cross-border repo and collateral transactions. This initiative follows extensive research by the Digital Asset Co-Creation Consortium, which includes over 68 organizations exploring on-chain bond infrastructure. The project will move to live-system verification in November, testing delivery-versus-payment mechanisms alongside tokenized deposits and stablecoins. As Progmat currently holds a significant share of Japan's security token market, this expansion into sovereign debt represents a major shift toward digitizing high-volume financial assets. The success of this integration could fundamentally improve the efficiency of the Japanese bond market and influence future institutional blockchain adoption.
Key points
- Progmat and Digital Asset partner to bring Japanese government bonds onto the Canton Network.
- tJGBs will maintain legal compliance with Japan's Book-Entry Transfer Act for 24/7 settlement.
- Live-system verification for repo transactions and DvP begins in November with major financial institutions.
- Progmat currently manages over ¥290.6 billion in security tokens, representing Japan's largest market share.
Background
Progmat is a prominent Japanese digital asset issuance platform, originally incubated by Mitsubishi UFJ Financial Group, that facilitates the tokenization of securities and other financial instruments. The Canton Network is an interoperable, privacy-enabled blockchain infrastructure specifically designed for institutional finance, allowing for the secure, compliant exchange of assets across different applications.