MUFG Companies to Test Onchain Japanese Government Bond Repo Transactions
Four MUFG entities are collaborating on a proof of concept using the Canton Network to bring JGB repo transactions onchain.
Quick Look
Four MUFG companies are partnering with Digital Asset Holdings and Progmat to test Japanese government bond repo transactions onchain using the Canton Network, as part of Japan's Payment Innovation Project pilot.
AI-generated summary
Why It Matters
Part of Japan's Financial Services Agency Payment Innovation Project pilot announced in February 2026.
Four MUFG companies plan to bring Japanese government bond repo transactions onchain using the Canton Network, as part of a new proof of concept (PoC).
The four companies, including MUFG, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking and MUFG Bank, will collaborate with Digital Asset Holdings and Progmat for the PoC, according to a Thursday announcement.
The companies said they seek to improve operational efficiency through automation of the transaction lifecycle, enable real-time intraday settlement 24/7, as well as enhance funding and capital efficiency.
The initiative is part of the Payment Innovation Project pilot announced by Japan’s Financial Services Agency in February 2026, aimed at helping fintech firms run PoCs on advanced payment technologies such as blockchain-based solutions, stablecoins, tokenization and onchain settlement.
MUFG has been extending its push into blockchain. In June 2023, the financial services firm announced that its stablecoin issuance platform “Progmat Coin” will be used by banks to launch Japanese yen-pegged stablecoins on several public blockchains.
MUFG dropped its blockchain payments project GO-Net Japan in February 2022 to focus on its stablecoin initiatives.
Open Questions
- When will the proof of concept conclude?
- Will the system be deployed for commercial use?
