Japan’s largest bank partners with Digital Asset and Progmat to automate repo transactions and enable real-time settlement using blockchain technology.
Mitsubishi UFJ Financial Group will trial blockchain-based settlement for Japanese government bond repos, aiming for 24/7 real-time processing. The proof of concept involves four MUFG units and leverages the Canton Network to enhance operational and capital efficiency through automation.
The initiative aligns with Japan’s Financial Services Agency pilot program launched in February 2026, focusing on advanced payment technologies like tokenization and onchain settlement. MUFG previously shifted its blockchain efforts toward stablecoin issuance after discontinuing its GO-Net Japan payments project in 2022.
The project seeks to streamline the transaction lifecycle, reduce manual processes, and improve funding efficiency for market participants. No immediate market reaction was reported following the announcement.