Japan to test government bonds as digital collateral on Canton

The Japanese Securities Clearing Corporation will test using Japanese government bonds as digital collateral on the Canton network with Mizuho, Nomura and Digital Asset.

Japan Securities Clearing Corporation (JSCC), part of Japan Exchange Group (JPX), said Monday it will launch a proof of concept with Mizuho Financial Group, Nomura Holdings and Digital Asset to test the use of Japanese government bonds as digital collateral on the Canton Network.

The project will examine whether Japanese Government Bonds (JGBs) can be transferred and managed onchain while maintaining the legal status of the bonds under the Book-Entry Transfer Act and the Financial Instruments and Exchange Act.

The trial will also test whether integrating existing systems with Canton’s blockchain infrastructure can support more sophisticated, real-time collateral transactions on a 24/7 basis, including in cross-border use cases.

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