Japan Securities Clearing Corporation (JSCC) is launching a proof of concept to test Japanese government bonds as digital collateral on the Canton Network. The trial involves major financial players Mizuho Financial Group, Nomura Holdings, and Digital Asset.
The initiative will assess the onchain transfer and management of Japanese Government Bonds (JGBs) while ensuring their legal standing. It will also explore how integrating existing systems with Canton's blockchain infrastructure can enable sophisticated, real-time collateral transactions, including cross-border applications.
This project was selected for support by Japan’s Financial Services Agency as part of its Payment Innovation Project.
The trial positions one of the world's largest sovereign bond markets within the ongoing discussion about efficient digital collateral management. The outcome is expected to inform future uses of JGBs in digital collateral processes.