JSCC Collaborates with Mizuho, Nomura, and Digital Asset to Launch Blockchain Government Bond Collateral Experiment

On April 21, Japan Securities Clearing Corporation (JSCC), a clearing agency under the Japan Exchange Group, announced a collaboration with Mizuho Bank, Nomura Securities, and Digital Asset to initiate a proof-of-concept experiment aimed at exploring the use of blockchain technology for collateral management of Japanese Government Bonds (JGBs). According to a joint statement released on Monday, the experiment will integrate existing systems from multiple institutions via the Canton Network to test the on-chain transfer and management of JGBs. This initiative aims to assess the feasibility of real-time collateral trading while ensuring compliance with relevant financial instruments and trading laws. The experiment will also investigate cross-border use cases involving clearinghouses, institutional investors, and other market participants. JSCC stated that this experiment is part of a broader initiative under the Financial Services Agency’s ‘Payment Innovation Project.’ As overseas markets like the United States make progress in testing similar infrastructure, advancing JGBs collateral management has become an ‘urgent priority.’ Previously, the Depository Trust & Clearing Corporation (DTCC) in the U.S. launched a pilot to tokenize U.S. Treasury bonds, and South Korea is also conducting related tests.