Progmat and Digital Asset Sign MOU to Tokenise Japanese Government Bonds on Canton Network
Key points
- Progmat, Inc. and Digital Asset Holdings, LLC signed an MOU on 10 November 2026 to bring JGB transactions and settlement on-chain via Canton Network.
- The tJGB structure links on-chain data to the book-entry transfer account register held under Japan's Book-Entry Transfer Act, preserving the legal nature and settlement finality of government bonds.
- On-chain repo transactions using tJGBs are cited as the primary near-term use case, with cross-border settlement between Japanese institutions and overseas counterparties identified as the key pain point to address.
- The partners will explore services to facilitate Canton Network node operation by financial institutions and will expand engagement with institutions seeking to run demonstrations.
- The initiative enters a 'live verification phase,' making it a structured pilot rather than a fully commercialised deployment.
Progmat, Inc. and Digital Asset Holdings, LLC have formalised a memorandum of understanding to bring Japanese Government Bond (JGB) transactions onto the Canton Network, a blockchain built for institutional finance. Under the agreement, Digital Asset will add Canton Network support to Progmat’s digital-asset issuance and management platform, which holds the leading domestic market share in Japan, while the two firms will also integrate the book-entry transfer account register to enable tokenised JGBs (tJGB) that preserve the legal character of book-entry government bonds and maintain settlement finality.
The collaboration’s immediate focus is on-chain repo transactions using tJGBs, mirroring activity already advancing in the United States around tokenised Treasuries and digital money for collateral and intraday repo. The partners have identified cross-border settlement between Japanese financial institutions and overseas counterparties as a priority use case, citing constraints on transaction hours in existing infrastructure as a problem that programmable 24/7 settlement could address.
Beyond the tJGB mechanism itself, the two companies will examine services to help financial institutions run Canton Network nodes and will progressively engage institutions interested in demonstrations. The arrangement is an announced intent rather than a live production deployment: the source describes commencement of a “live verification phase,” suggesting the initiative is entering structured pilot activity rather than full commercial operation.