Overview
- Japan Securities Clearing Corporation started a proof of concept with Mizuho, Nomura and Digital Asset to use Japanese government bonds as digital collateral on the Canton Network.
- The trial checks if bonds can move and be managed on a blockchain while staying compliant with Japan’s Book-Entry Transfer Act and the Financial Instruments and Exchange Act, which govern how bonds are issued, held and transferred.
- Participants will test whether today’s market systems can connect to the new setup to move collateral in real time across borders at any hour.
- The project runs inside the Financial Services Agency’s Payment Innovation Project sandbox, and the firms set no timeline for a commercial rollout.
- The work draws on a December 2025 Canton pilot that let major banks reuse tokenized U.S. Treasuries as collateral, as Japan and the U.K. pursue broader experiments to modernize bond and payments infrastructure.