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Pilot or experimentListed by Progmat

MUFG announces a JGB repo experiment on Canton Network1

MUFG group companies announced collaboration with Digital Asset and Progmat on an experiment for on-chain JGB repo transactions using Canton Network.1

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Japanese original ↗プレスリリース「日本国債(JGB)レポ取引のオンチェーン化に係る実証実験開始について」

What changed

  • One workstream will examine on-chain delivery-versus-payment settlement of JGBs and digital money.2
  • The JGBs would retain their legal character as book-entry government bonds.3
  • Tokenised deposits and stablecoins are being considered for the digital-money leg.4
  • A second workstream will use Secured Finance's lending protocol to automate the repo transaction lifecycle.5

Why it matters

The proposed mechanism links blockchain activity to updates of account-management institutions' transfer registers.3

Watch next

  • MUFG plans discussions with the relevant authorities toward the experiment and subsequent implementation.6
  • MUFG intends to work with domestic and overseas financial institutions and other market participants.6