MUFG tests blockchain settlement for JGB repo trades

Mitsubishi UFJ Financial Group said on Aug. 13 that four MUFG companies will work with Digital Asset and Progmat on a proof-of-concept for Japanese government bond repo settlement using Canton Network. Summary MUFG will test onchain JGB repo settlement using Canton Network with Digital Asset and Progmat. The PoC will synchronize JGB book-entry records with blockchain while considering tokenized deposits or stablecoins. Secured Finance will test automating the full repo transaction lifecycle through its blockchain lending protocol. Japan’s FSA selected the project under its Payment Innovation Project pilot program in February 2026. MUFG says real-time intraday settlement could improve funding efficiency while expanding settlement windows for institutions. The project will test whether JGB repo transactions can move closer to real-time settlement while remaining connected to Japan’s existing securities infrastructure, according to the bank’s release. The plan is narrower than simply issuing new tokenized JGBs. MUFG said the bonds would retain their legal status as book-entry transfer bonds. The relevant account register would instead be updated in conjunction with blockchain records,...