Japan's Megabanks Launch JGB Tokenization Study Targeting 24/7 T+0 Settlement This Week

This week, Progmat's Digital Asset Co-Creation Consortium announced it launched a joint study to tokenize Japanese government bonds (JGBs) and enable onchain repo transactions settled through stablecoins, aiming to begin implementation within 2026 and support 24/7 T+0 settlement.

The working group includes Japan's three megabanks — Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group — alongside BlackRock Japan, Daiwa Securities Group, SBI Securities and State Street Trust and Banking. Separately, Japan Securities Clearing Corporation, Nomura Holdings and Mizuho recently launched proof-of-concept trials on the Canton Network to test blockchain-based collateral management and onchain transfers of Japanese government bonds.