Mizuho, Nomura, and other institutions will conduct an empirical experiment on digital collateral management for Japanese government bonds based on the Canton network.

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Deep Tide TechFlow News, April 20 — Mizuho Financial Group, Nomura Holdings, Japan Securities Clearing Corporation (JSCC), and Digital Asset Holdings announced the joint launch of a blockchain-based collateral management pilot project. This experiment will utilize Canton Network, designed specifically for institutional finance, to explore the use of Japanese Government Bonds (JGBs) for digital collateral management.

The experiment will test the transfer of JGB rights and account ledger updates on a multi-layer account management structure using blockchain technology, and explore achieving 24/7, 365-day real-time collateral transactions while maintaining the legal attributes of issued securities. The pilot also covers cross-border scenarios and will evaluate compatibility with relevant laws, regulations, and rules. This project is part of Japan’s Financial Services Agency’s “Payment Modernization Project (PIP),” aiming to improve cross-border collateral management efficiency, reduce operational costs for financial institutions and investors, and enhance Japan’s financial market international competitiveness.

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