Mitsubishi UFJ Financial Group Plans to Test Blockchain Real-Time Settlement of Japanese Government Bond Transactions

TechFlow News, August 13, according to CoinDesk, Mitsubishi UFJ Financial Group (MUFG) announced plans to use the Canton Network to conduct a proof of concept for on-chain transactions of Japanese Government Bonds (JGB), aiming to achieve real-time 24/7 settlement, replacing the traditional settlement process that requires 1 to 3 days. MUFG stated that this move aims to improve the operational efficiency and capital efficiency of repo transactions, and pointed out that European and American financial institutions have expanded proof of concept projects in this field, among which JPMorgan Chase's Kinexys Network has supported blockchain-based intraday US Treasury repo business since 2020.

MUFG pointed out that Japanese Government Bonds are widely used as collateral for repo transactions by domestic and international market participants due to their high credit rating and liquidity, and the trend of on-chain adoption is accelerating. In addition, MUFG has previously joined forces with Sumitomo Mitsui Financial Group (SMBC) and Mizuho Financial Group to explore the joint issuance of stablecoins before March 2027, and this JGB on-chain settlement test is an important part of its blockchain strategic layout.