Proof of Concept Launched for Japanese Government Bond Repos (MUFG)

Mitsubishi UFJ Financial Group (MUFG), Digital Asset Holdings and Progmat have launched a Financial Services Agency–selected proof of concept for on-chain Japanese government bond repo, testing delivery-versus-payment settlement and lifecycle automation while retaining the securities’ existing book-entry legal form. The project links account-management ledgers to Canton Network infrastructure and considers tokenized deposits or stablecoins for the cash leg; it also tests an automated lending protocol for repo initiation, collateral transfer, and unwinding. Its policy relevance is whether tokenized infrastructure can support intraday liquidity and wider settlement windows without displacing regulated custody, transfer-registration, or deposit-taking functions. [MUFG]

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