Japanese tokenization platform Progmat (@progmat_en) has signed a memorandum of understanding with Digital Asset (@digitalasset), the company behind @CantonNetwork ($CC), to move trading and settlement of tokenized Japanese Government Bonds (JGBs) onto the Canton blockchain. The agreement is dated November 9, according to TokenPost.
What the Agreement Covers
The first phase calls for
The plan includes connecting Progmat's digital asset platform to Canton Network, an institutional blockchain, and developing tJGB, a tokenized government bond designed to preserve the existing legal attributes of Japanese government bonds.. The planned product would also
.
Under the plan, the tokens would remain tied to Japan's official bond register. A report on an earlier phase of the initiative explains that
the underlying government bonds remain managed in the Bank of Japan's book-entry transfer ledger and held by a designated JGB custodian, as BigGo Finance described. The aim is to preserve the bonds' legal status while enabling round-the-clock settlement.
TokenPost notes that
These settlement capabilities are project goals, not completed features..
Working Group to Test Repo Transactions
Testing will be conducted by a working group within Progmat's Digital Asset Co-Creation Consortium (DCC). According to TechFlow,
the Tokenized Government Bonds and On-Chain Repo working group has drawn participation from over 68 institutions. It plans to
The group plans to launch the second phase of live pilot testing in November, deploying a sandbox on Canton to issue tJGBs, tokenized deposits, and stablecoins, with connections to repo and collateral platforms to be added progressively.
Repos are short-term loans secured by bonds. The group's stated goal is to pair tokenized bond collateral with stablecoin or tokenized deposit cash legs. When the working group was established in May,
the plan was to settle on the same day (T+0) using an on-chain lending protocol, compared with settlement on the next business day (T+1) for traditional repo using bank deposits.
Major Japanese banks are already involved in related work. Securities Finance Times reported that the working group includes
MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, State Street Trust and Banking, SBI Securities, and Japan Exchange Group's Market Innovation & Research. Separately,
MUFG and three affiliated financial institutions have announced that they are participating in related work to test delivery-versus-payment for government bonds and digital currency, as well as the full repo trading process..
The initiative is part of a broader effort to bring sovereign debt onto blockchain rails, with Canton positioned as infrastructure for regulated institutions. The pilot results will show whether on-chain repo can work at scale within Japan's existing bond settlement framework.
Sources
TokenPost: Progmat, Digital Asset Holdings Plan Tokenized Japanese Government Bonds
TechFlow: Progmat partners with Canton developers to advance Japanese government bond tokenization
Securities Finance Times: Zenith joins working group to tokenise JGB repo market onchain
Source: bsc.news. Adapted by NBTC.
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