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

BlockBeats news, April 21 — The clearing institution under the Japan Exchange Group, Japan Securities Clearing Corporation (JSCC), has partnered with Mizuho Bank, Nomura Securities, and Digital Asset to launch a proof-of-concept trial, aiming to explore using blockchain technology for collateral management of Japanese government bonds (JGBs).

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

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