MUFG Pilots Blockchain-Based Real-Time Settlement for Japanese Government Bonds
Mitsubishi UFJ Financial Group (MUFG), one of Japan's largest financial institutions, is testing real-time settlement for Japanese government bond trades using blockchain technology.
The pilot uses the Canton Network, a blockchain platform designed for institutional use, to process transactions in real time and reduce the current settlement delay of one to three days.
MUFG aims to improve operational and capital efficiency in repurchase agreement (repo) transactions by moving to a 24/7 settlement model.
The bank's move reflects a growing trend among major financial institutions to explore blockchain for core market infrastructure, with projects ranging from the European Central Bank's wholesale DLT trials to the Bank for International Settlements' Project Agorá.