MUFG Launches Blockchain Pilot for Real-Time JGB Repo Settlement

Mitsubishi UFJ Financial Group has launched a proof-of-concept project to test real-time settlement of Japanese government bond repurchase agreement transactions using blockchain technology. The initiative, announced on August 13, 2026, involves four MUFG affiliates and aims to modernize the settlement process for one of the world's largest sovereign bond markets.

The pilot program will test whether blockchain infrastructure can automate the repo transaction lifecycle and enable delivery-versus-payment settlement to occur in real time, 24 hours a day, seven days a week. Currently, such transactions typically settle on a T+1 basis, meaning the next business day. The project seeks to replace this conventional cycle with near-instantaneous onchain settlement.

Four companies within the MUFG group are participating: MUFG itself, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank. They are collaborating with Digital Asset Holdings, the creator of the Canton Network blockchain, and Progmat, a digital asset platform. The proof-of-concept is being conducted as part of the Financial Services Agency's "Payment Innovation Project," a regulatory program...