Japan's JSCC, in collaboration with Mizuho, Nomura, and Digital Asset, has launched a blockchain government bond collateral experiment

The Japan Securities Clearing Corporation (JSCC), a clearing institution under the Japan Exchange Group, has partnered with Mizuho Bank, Nomura Securities, and Digital Asset to launch a proof-of-concept trial aimed at exploring the use of blockchain technology for collateral management of Japanese Government Bonds (JGBs).

According to a joint statement released on Monday, the trial will integrate existing systems from multiple institutions through the Canton Network to test the on-chain transfer and management of JGBs. This initiative aims to assess the feasibility of achieving real-time collateral trading while ensuring compliance with relevant financial instruments and trading laws. The trial will also investigate cross-border use cases involving clearinghouses, institutional investors, and other market participants.

JSCC stated that this trial is part of a broader initiative under the Financial Services Agency's "Payment Innovation Project." As overseas markets like the United States make progress in testing similar infrastructures, advancing JGBs collateral management has become an "urgent priority." Previously, the Depository Trust & Clearing Corporation (DTCC) in the U.S. launched a pilot to tokenize U.S. Treasury securities, and South Korea is also conducting related tests.