JSCC, Mizuho, and Nomura are testing the use of tokenized Japanese Government Bonds (JGBs) as collateral on the Canton Network in a new blockchain pilot.
The proof-of-concept (PoC), launched by JSCC, a subsidiary of Japan Exchange Group (JPX), aims to tokenize JGBs as collateral without compromising legal protections. The pilot is part of the Financial Services Agency's Payment Innovation Project (PIP) sandbox and will run alongside DTCC's existing Canton-based tokenized US Treasury pilot.
The test objectives include transferring and managing JGBs across multiple institutions on a single ledger, running 24/7 collateral posting and substitution in real-time, supporting cross-border flows between clearing houses, institutional investors, clients, and agents, and confirming that rights over JGBs can be updated on-chain with the same legal standing as off-chain records.
The partnership brings together Japan's central securities clearer and two of its largest banking groups on a single institutional blockchain. The Canton Network uses a component called the Global Synchronizer to enable atomic settlement while keeping transaction details private between counterparties.