TechFlow News, April 20: Mizuho Financial Group, Nomura Holdings, the Japan Securities Clearing Corporation (JSCC), and Digital Asset Holdings jointly announced the launch of a proof-of-concept experiment for an advanced blockchain-based collateral management system. This experiment will leverage the Canton Network—a blockchain platform specifically designed for institutional finance—to explore digital collateral management using Japanese Government Bonds (JGBs).
The experiment will test JGB rights transfers and ledger updates via blockchain within a multi-tiered account management structure, and explore round-the-clock, 365-day real-time collateral transactions while preserving the existing legal attributes of issued securities. It will also cover cross-border scenarios and assess compatibility with relevant laws, regulations, and rules. This project forms part of the Japanese Financial Services Agency’s “Payment Innovation Project (PIP)” initiative, aiming to enhance cross-border collateral management efficiency, reduce operational costs for financial institutions and investors, and strengthen the international competitiveness of Japan’s financial markets.
