Four MUFG group companies, together with Digital Asset Holdings, LLC (DA) and Progmat, Inc., have begun collaborating on a proof of concept to verify the feasibility of putting Japanese government bond repo trading on-chain. The initiative is expected to use the Canton Network and will be conducted in cooperation with financial institutions in Japan and overseas.
Four MUFG group companies, including MUFG, together with Digital Asset Holdings, LLC (DA) and Progmat, Inc., announced that they will begin collaborating on a proof of concept for putting Japanese government bond repo trading on-chain. The collaboration is expected to use the Canton Network and is positioned as part of an initiative to apply blockchain technology in financial services for institutional investors.
The initiative comes as financial markets in Japan and overseas advance proof-of-concept work on automating transaction lifecycles and enabling real-time settlement using blockchain technology. Japanese government bonds are widely used as collateral in repo transactions. Momentum toward putting these transactions on-chain is building from the perspective of maintaining liquidity in the Japanese market and improving convenience for investors. MUFG, Japan's largest financial group, has indicated that it aims to provide the same functions and services on-chain.
The proof of concept will be conducted as part of an initiative supported by the Financial Services Agency's payments modernization project (PIP). MUFG also plans to work with Morgan Stanley, its global strategic capital alliance partner, with the aim of taking the initiative into real-world deployment. The attached release references related materials and images.