Zenith Joins Progmat Working Group to Advance Japan’s Repo Market

Japan’s $1.6 trillion repurchase agreement, or repo, market provides critical short-term liquidity to the traditional financial system. Conventional transactions, however, rely on manual processes and T+1 settlement, creating efficiency bottlenecks and settlement risk. As distributed-ledger technology matures, tokenizing government bonds on a blockchain and settling them instantly against stablecoins has become a central focus of Japan’s financial digitalization. The country is also actively exploring new on-chain trading structures.

Japanese digital asset platform Progmat established an on-chain repo working group in May 2026. Blockchain technology company Zenith announced in June that it had joined the group to explore the use of tokenization in Japan’s bond market. The initiative aims to use issued stablecoins and tokenized government bonds to enable round-the-clock T+0 instant settlement, substantially boosting liquidity in the $1.6 trillion market. More than 40 global financial institutions are already participating.