Japan Securities Clearing Corporation (JSCC), part of Japan Exchange Group (JPX), announced Monday it will launch a proof of concept with Mizuho Financial Group, Nomura Holdings, and Digital Asset to test the use of Japanese government bonds as digital collateral on the Canton Network.
The project will examine whether Japanese Government Bonds (JGBs) can be transferred and managed onchain while maintaining the legal status of the bonds under the Book-Entry Transfer Act and the Financial Instruments and Exchange Act.
The trial will also assess whether integrating existing systems with Canton’s blockchain infrastructure can support more advanced, real-time collateral transactions on a 24/7 basis, including cross-border use cases.
Japan’s Financial Services Agency selected the initiative in February for support under its Payment Innovation Project, which is part of the FinTech PoC Hub, the announcement states.
The trial places one of the world’s largest sovereign bond markets at the centre of the debate on whether collateral can move more efficiently across digital market infrastructure without violating existing legal and supervisory frameworks.
The companies stated the trial coincides with accelerating digital asset adoption in the United States and other markets, with momentum also building in Japan. The outcome is expected to inform discussions on the use of JGBs in digital collateral processes, though no commercial rollout has been specified.
An earlier Canton pilot in December 2025 saw tokenized US Treasuries reused as collateral in real time between major dealers and market participants, including Bank of America and Société Générale.
Source: X.com
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