MUFG Tests Real-Time Blockchain Settlement for JGB Repos

Repurchase agreements are a pillar of wholesale funding, allowing institutions to borrow cash against Japanese Government Bonds and later reverse the trade. Industry work launched in May estimated Japan’s government-bond-backed repo market at more than 250 trillion yen, underscoring the potential gains from faster collateral movement. MUFG’s project targets the gap between always-on digital assets and legacy settlement rails by synchronizing the securities and cash legs, reducing settlement exposure and freeing liquidity for reuse within the trading day.

MUFG said on Aug. 13, 2026, that MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and Mitsubishi UFJ Trust and Banking had launched a proof of concept with Digital Asset Holdings, Progmat and Secured Finance. The Canton Network trial will examine on-chain delivery-versus-payment using digital money and automation of the repo lifecycle through a lending protocol, while preserving compliance with Japan’s securities rules. MUFG did not disclose the transaction value or a completion date.