Japan tests digital collateral use of government bonds on blockchain network Canton

Japan Securities Clearing Corporation (JSCC) is launching a proof of concept with Mizuho, Nomura, and Digital Asset to test using Japanese government bonds (JGBs) as digital collateral on the Canton blockchain network. The trial aims to verify if JGBs can be transferred and managed onchain while preserving their legal status under Japanese law, and to explore real-time, 24/7 collateral transactions including cross-border use. Supported by Japan's Financial Services Agency, this initiative follows similar tests with US Treasuries and could influence future digital collateral processes for sovereign bonds in Japan. No commercial rollout has been announced yet.