MUFG Launches Blockchain Pilot for Japanese Government Bond Repo Trading
Through an innovative proof of concept, MUFG aims to migrate Japanese government bond repo transactions to blockchain infrastructure, enabling round-the-clock settlement alongside enhanced operational and capital efficiency.
A consortium of four entities within the MUFG group is set to migrate Japanese government bond repo transactions onto blockchain infrastructure via the Canton Network through a newly launched proof of concept (PoC).
The participating entities—MUFG, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, alongside MUFG Bank—will work in partnership with Digital Asset Holdings and Progmat throughout this PoC initiative, as revealed in an announcement made Thursday.
According to the participating companies, their objectives include streamlining operational efficiency by automating the complete transaction lifecycle, facilitating real-time intraday settlement capabilities around the clock every day of the week, and improving both funding efficiency and capital optimization.
This endeavor forms part of the Payment Innovation Project pilot that Japan's Financial Services Agency unveiled in February 2026, which was designed to support fintech companies in conducting PoCs focused on cutting-edge payment technologies including blockchain-based infrastructure, stablecoins, asset tokenization and settlement systems operating onchain.
The financial services giant MUFG has been actively expanding its blockchain footprint. Back in June 2023, the company revealed that its stablecoin issuance infrastructure known as "Progmat Coin" would be utilized by banking institutions to introduce Japanese yen-pegged stablecoins across multiple public blockchains.
In February 2022, MUFG discontinued its blockchain payments initiative GO-Net Japan in order to concentrate resources on its stablecoin development efforts.