MUFG tests blockchain settlement for Japanese government bond repos
Tokyo-based MUFG is preparing a proof-of-concept to execute Japanese government bond (JGB) repo transactions on the Canton blockchain network, aiming for real-time, 24/7 onchain settlement instead of the usual 1–3 day settlement. MUFG expects the move to improve operational and capital efficiency for repo transactions and noted similar initiatives in Europe and the U.S., including JPMorgan's Kinexys network which has run intraday U.S. Treasury-bond repos since 2020. The project is part of broader MUFG blockchain work and follows joint stablecoin exploration with SMBC and Mizuho toward a possible 2027 launch.
MUFG will trial onchain settlement to speed and improve JGB repo efficiency
Context
Banks in Europe and the United States have run blockchain repo projects. JPMorgan's Kinexys network went live in 2020 for U.S. Treasury repo. MUFG is testing a Canton-based proof-of-concept and may expand if successful.
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