Japan Securities Clearing Corporation will test the use of Japanese government bonds as digital collateral on the Canton Network in a new proof-of-concept with Mizuho Financial Group, Nomura Holdings and Digital Asset.
The trial will examine whether Japanese Government Bonds can be transferred and managed onchain while preserving their legal status under existing financial regulations.
The project will also test whether blockchain integration can enable real-time, 24/7 collateral transactions, including cross-border use cases.
Japan’s Financial Services Agency selected the initiative under its Payment Innovation Project, supporting experimentation with new financial infrastructure.
The pilot brings one of the world’s largest sovereign bond markets into the broader push toward digital collateral and tokenisation in global finance.
It follows earlier Canton tests using tokenised US Treasuries, which demonstrated the potential to reuse government securities as collateral across multiple participants in real time.
The results are expected to inform future policy and market design, though no timeline for commercial deployment has been announced.