Japan's JSCC partners with Mizuho, Nomura, and Digital Asset to launch a blockchain government bond collateral experiment

ChainCatcher News, Japan Securities Clearing Corporation (JSCC), a clearing organization under the Japan Exchange Group, has partnered with Mizuho Bank, Nomura Securities, and Digital Asset to launch a proof-of-concept experiment aimed at exploring the use of blockchain technology for collateral management of Japanese government bonds (JGBs).

According to a joint statement released on Monday, the experiment will integrate existing systems of multiple institutions through the Canton Network to test on-chain transfer and management of JGBs. The initiative aims to assess the feasibility of real-time collateral trading while ensuring compliance with relevant financial instruments and trading laws. The experiment will also explore cross-border use cases involving clearinghouses, institutional investors, and other market participants.

JSCC stated that this experiment is part of a broader initiative under Japan’s Financial Services Agency’s “Payment Innovation Project.” As overseas markets like the U.S. make progress in testing similar infrastructure, advancing JGB collateral management has become an “urgent priority.” Previously, the Depository Trust & Clearing Corporation (DTCC) in the U.S. launched a pilot to tokenize U.S. Treasuries, and South Korea is also conducting related tests.