MUFG Tests Real-Time JGB Repo Settlement on Canton Network

Mitsubishi UFJ Financial Group (MUFG) has launched a proof-of-concept on the Canton Network, a blockchain built for regulated financial markets. The pilot pairs MUFG with three of its subsidiaries and several other companies to automate Japanese Government Bond (JGB) repo transactions in real-time.

The goal is to move towards round-the-clock settlement while keeping JGBs classified as traditional book-entry transfer bonds. The pilot tests two use cases: settling JGBs against digital money on a delivery-versus-payment basis, and automating the full repo lifecycle through a lending protocol from Secured Finance AG.

MUFG plans deeper engagement with Japanese regulators and market participants before the PoC moves toward practical use, and will continue developing the project with global strategic partner Morgan Stanley. The pilot is part of Japan's Payment Innovation Project, which aims to modernize the country's payment systems.