MUFG Tests Blockchain-Based Settlement for Japanese Government Bond Repo Trades
Mitsubishi UFJ Financial Group (MUFG) is testing blockchain-based settlement for Japanese government bond repo trades. The pilot, which began in 2026, uses the Canton Network to synchronize account register changes and enable delivery versus payment using digital money.
The test aims to automate operational work and expand the settlement window, potentially reducing the amount of capital firms set aside to manage settlement delays. MUFG is working with Digital Asset, creator of the Canton Network, and Progmat on the proof of concept.
The pilot does not replace the legal form of JGBs with blockchain-issued tokens but instead uses digital money such as tokenized bank deposits or stablecoins for payment and delivery. The Switzerland-based Secured Finance AG will provide a lending protocol to handle the full repo process through smart contracts.