Altcoins News
By Bruce Buterin
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Regulatory Green Light. Japan's Financial Services Agency gave formal approval for the trial back in February.
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Why Collateral Management Matters. Collateral management is messy. It involves coordination among institutions and jurisdictions…
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Four of Japan's largest financial institutions just kicked off a blockchain experiment that could change how Japanese government bonds get traded. The goal?
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Mizuho Financial Group, Nomura Holdings, Japan Securities Clearing Corporation, and Digital Asset are running the trial on the Canton Network, a blockchain platform built…
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Japan's Financial Services Agency gave formal approval for the trial back in February. It's part of the agency's Payment Innovation Project.
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But there's a lot riding on this. The Canton Network already handles similar projects from JPMorgan, Goldman Sachs, and the DTCC, which is tokenizing American Treasury bonds.
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Japanese officials seem pretty optimistic. They think this experiment will boost Tokyo's standing in the fast-growing global digital asset market.
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Collateral management is messy. It involves coordination among institutions and jurisdictions worldwide, with tons of paperwork and settlement lags.
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The involvement of the Canton Network is a big deal. JPMorgan and Goldman Sachs already use it. So does the DTCC for tokenizing American Treasury bonds.
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Japan's sovereign debt market is one of the world's largest. Digitizing government bond collateral management could set a precedent for other countries thinking about similar…
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Related: Bitcoin and Ethereum Take Different Roads on Blockchain Security Threats
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The Financial Services Agency's role here can't be overstated. Their review will decide if current laws can handle blockchain-based systems or if new regulations are needed.
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The trial reflects a broader trend among countries exploring digital tech in financial markets.
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The collaboration between major financial institutions and regulatory bodies in Japan is notable.
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Canton Network's existing projects with JPMorgan, Goldman Sachs, and the DTCC show a growing trend among financial institutions to use blockchain for operational efficiency.
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