MUFG Launches Blockchain Trial to Move Japanese Government Bond Repo Trades Onchain

Four companies under Japanese banking giant MUFG are testing a new blockchain based system to bring Japanese government bond repo transactions onto the Canton Network, aiming to enable faster and more efficient settlement.

Companies Involved and Goals

The initiative involves MUFG, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank, working alongside Digital Asset Holdings and Progmat on the proof of concept. The companies say the goal is to automate the transaction lifecycle, enable real-time settlement around the clock, and improve both funding and capital efficiency across bond repo operations.

Part of a Wider Government Initiative

This trial falls under Japan’s Payment Innovation Project, a pilot program launched by the country’s Financial Services Agency in February 2026 to support fintech firms experimenting with blockchain technology, stablecoins, tokenization and onchain settlement systems.

MUFG’s Ongoing Blockchain Push

MUFG has steadily expanded its involvement in blockchain infrastructure. In 2023, the firm confirmed that its Progmat Coin platform would allow Japanese banks to issue yen-backed stablecoins across multiple public blockchains. Notably, MUFG had previously shut down its earlier blockchain payments project, GO-Net Japan, in 2022 to redirect focus toward stablecoin development.