stable coins

Story: MUFG and Mizuho Put Japanese Bond Repos on Canton Network in 24-Hour Settlement Push

By James Thorp

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Japan's FSA Is Backing the Experiment. The trial runs under Japan's Financial Services Agency Payment Innovation Project, known as PIP,…

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Canton Network's Growing Institutional Footprint. Digital Asset, the company behind Canton, raised $355 million in June, with Andreessen Horowitz…

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Mitsubishi UFJ Financial Group is running live blockchain tests on Japanese government bond repo trades.

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Three MUFG units are involved. Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank are all part of the trial, working alongside Digital…

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Canton Network isn't new to tokenized government debt.

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MUFG's involvement goes deeper than just the Canton trial. The group is also part of Progmat's Tokenized JGB / On-chain Repo Working Group, which is specifically looking at…

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The T+0 settlement question is probably the biggest one the group is wrestling with. T+0 means a trade settles the same day it's executed — pretty much the holy grail for repo…

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Related: Wintermute Bets $1 Billion on AI Trading as TradFi Push Targets 50% of Revenue

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Canton's track record outside Japan is worth noting. S&P Dow Jones Indices and Kaiko used the network for a Treasury index earlier, integrating smart-contract infrastructure…

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MUFG's relationship with Progmat goes back several years. In 2023, MUFG was exploring stablecoin issuance through Progmat, working within Japan's regulated digital asset framework.

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The stablecoin angle hasn't disappeared either. The working group is apparently thinking about how stablecoins could link securities transfers with digital currency payments in…

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Related: MoneyGram Bets on Solanas Speed to Push DeFi Liquidity Forward

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And the logic makes sense. Right now, repo transactions involve a lot of handoffs — between custodians, clearing houses, payment systems.

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