Key Takeaways:
- JSCC, Mizuho, and Nomura launched a PoC on April 20, 2026, to test JGB digital collateral on the Canton Network.
- The JFSA-backed trial targets 24/7 real-time cross-border collateral settlement, replacing traditional business-hours processing.
- Results from the PoC, running through September 2026, will guide regulatory changes and commercialization of onchain JGB collateral.
JSCC, Mizuho, Nomura Test 24/7 JGB Collateral Settlement on Canton Network
The joint initiative, announced April 20, 2026, adds Digital Asset Holdings as the fourth participant. Digital Asset supplies the Canton Network platform, which was built specifically for institutional finance. The trial runs through approximately the end of September 2026.
The project is part of the Financial Services Agency (FSA) of Japan’s Payment Innovation Project, which selected the initiative for support in February 2026. That selection placed the trial inside Japan’s broader push to modernize financial market infrastructure using distributed ledger technology.
At its core, the PoC tests whether rights in JGBs, transferred under Japan’s Act on Book-Entry Transfer of Corporate Bonds and Shares, can move across a blockchain without losing their legal standing under existing Japanese law. Participants will also check whether changes to book-entry transfer records can happen in real time within a multi-institution account structure.
The four partners aim to move JGB collateral posting and substitution from a process tied to business hours into one that runs around the clock. Domestic and cross-border transactions are both within scope, covering clearing houses, institutional investors, clients, and agents.
JSCC President and CEO Isao Hasegawa leads the clearing corporation’s participation. Mizuho, led by President and Group CEO Masahiro Kihara, and Nomura, led by Representative Executive Officer and President Kentaro Okuda, each bring institutional market infrastructure to the testing environment. Digital Asset CEO Yuval Rooz oversees the technology layer.
The Canton Network offers privacy-preserving settlement capabilities that allow institutions to transact without sharing all data across a public ledger. That structure suits the compliance requirements major financial institutions face when handling sovereign debt instruments.
Japan‘s financial regulators have watched U.S. moves in this area closely. The Depository Trust and Clearing Corporation has explored tokenized collateral use cases on the same Canton Network for U.S. Treasuries. JSCC was the first international participant in DTCC’s Digital Launchpad sandbox in 2024, and both organizations co-authored research on the subject with JPX, JSCC’s parent company.
JGBs are held as high-quality eligible collateral by institutional investors globally. Keeping them accessible and liquid in digital asset markets is a stated priority for Japan’s financial authorities.
The PoC will also review whether internal rules and regulations at each institution require amendments to support commercialization. No commercial launch date has been set, and participants say any next steps will depend on findings from the testing period.
Mizuho and Nomura are separately involved in other JFSA Payment Innovation Project initiatives, including a stablecoin-based securities settlement pilot. That parallel work reflects how Japan’s major financial institutions are running multiple blockchain tests under regulatory oversight at the same time.
Expected operational benefits include lower administrative costs for collateral management, reduced manual processing tied to posting and substitution workflows, and improved coordination between JGBs and digital-native assets held by the same institutions.
Results from the PoC will be used to evaluate what regulatory adjustments, system updates, and rule changes would be needed before any commercial deployment. The trial does not guarantee a live product, but it is the most direct step Japan’s clearing and banking sector has taken toward onchain government bond collateral management.
