The Japanese Securities Clearing Corporation, which operates under Japan Exchange Group, has started a proof of concept that will test Japanese government bonds as digital collateral on the Canton Network.
Mizuho Financial Group, Nomura Holdings, and Digital Asset are participating in the project. The trial aims to determine whether Japanese Government Bonds can be transferred and managed onchain while still complying with the Book-Entry Transfer Act and the Financial Instruments and Exchange Act.
Around-the-Clock Collateral Transactions
Another goal of the test involves checking if existing systems can integrate with Canton’s blockchain infrastructure to support more sophisticated, real-time collateral transactions on a 24/7 basis. Cross-border use cases are also part of the examination.Japan’s Financial Services Agency selected this initiative in February for support under its Payment Innovation Project, which falls under the FinTech PoC Hub.
The trial is taking place as digital asset adoption accelerates in the United States and other markets, with momentum also building inside Japan. An earlier Canton pilot in December 2025 saw tokenized US Treasuries reused as collateral in real time between major dealers, including Bank of America and Société Générale.
While the results are expected to inform discussions on using JGBs in digital collateral processes, no commercial rollout has been specified at this stage.
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