JSCC To Test Japanese Government Bonds on Canton Network

The Japan Securities Clearing Corporation (JSCC) has initiated a trial to test the tokenization and on-chain management of Japanese Government Bonds (JGBs) using the Canton Network. This project, supported by Japan's Financial Services Agency, involves major financial institutions including Mizuho Financial Group, Nomura Holdings, and Digital Asset. The primary objective is to determine if JGBs can be transferred on-chain while maintaining compliance with the Book-Entry Transfer Act and the Financial Instruments and Exchange Act. The pilot will evaluate the integration of existing financial infrastructure with Canton's blockchain to facilitate real-time, 24/7 collateral transactions and cross-border settlements. This initiative follows a successful December 2025 pilot on the Canton Network that utilized tokenized U.S. Treasuries for real-time collateral reuse among global banks. While no commercial rollout is currently scheduled, the findings are intended to inform future regulatory policy regarding digital asset adoption in Japan. By examining one of the world's largest sovereign bond markets, the trial seeks to enhance collateral efficiency within established legal frameworks.

✨AI-generated summary — read the full article at the source for complete details.