In a move reminiscent of previous projects by banks in other nations, Mitsubishi UFJ Financial Group (MUFG) intends to deploy blockchain technology to provide speedier settlement of Japanese government bond (JGB) transactions.
In order to speed up the settlement, which normally takes one to three days using conventional methods, MUFG is putting together a proof-of-concept for onchain JGB transactions utilizing the Canton network.
MUFG, Digital Asset, Secured Finance, and Progmat are launching a proof-of-concept for onchain Japanese Government Bond repo transactions on @CantonNetwork, aiming to bring the full repo lifecycle, trade agreement through settlement, onchain.
Full PR.https://t.co/TLdNnPdrle
— Digital Asset (@digitalasset) August 13, 2026
Thru real-time, round-the-clock onchain settlement, the Tokyo-based bank hopes to increase the operational and capital efficiency of repo transactions—the buying of securities as a type of short-term borrowing and lending.
Financial institutions in the US and Europe have increased proof-of-concept initiatives to accomplish this very objective, according to MUFG. Thru JPMorgan’s Kinexys network, which launched in 2020, blockchain-based intraday U.S. Treasury-bond repos have been available for a number of years.
Source: mufg.jp
“JGBs are frequently used as collateral for repo transactions by market participants in Japan and overseas due to their high credit worthiness and liquidity, and momentum for bringing them onchain is growing,” MUFG stated on Wednesday.
The project is a component of a larger range of MUFG projects investigating the application of blockchain technology to conventional financial operations. The bank most recently partnered with Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMBC), two of the biggest Japanese banks, to investigate launching a jointly issued stablecoin by March 2027.
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