MUFG Launches On-Chain JGB Repo Proof-of-Concept With Digital Asset and Progmat

Four entities within Mitsubishi UFJ Financial Group (MUFG), together with blockchain infrastructure firm Digital Asset Holdings and tokenisation platform Progmat, have begun a proof-of-concept (PoC) to bring Japanese Government Bond (JGB) repo transactions onto the Canton Network, a blockchain designed for institutional finance. The PoC forms part of a series of pilot projects selected in February 2026 under Japan’s Financial Services Agency (FSA) Payment Innovation Project.

The PoC covers two primary workstreams. First, it will test on-chain simultaneous delivery-versus-payment (DvP) settlement of JGBs against digital money, with tokenised deposits or stablecoins under consideration for the cash leg, while preserving the legal status of JGBs as book-entry transfer bonds. Second, it will attempt to automate the full repo transaction lifecycle using a lending protocol supplied by Secured Finance AG, an additional collaborator named in the project.

The initiative sits within a broader international shift: intraday government bond repo PoCs have expanded rapidly in Europe and the United States, and commercial intraday US Treasury repo services are already live in those markets. MUFG positions this effort as essential to maintaining Japan’s relevance in that arc, given that JGBs serve as widely used collateral for repo participants both domestically and internationally. The group states it intends to engage regulators and a broad range of market participants, including overseas financial institutions, as the work progresses, and plans close collaboration with Morgan Stanley as its global strategic alliance partner.