‍#Gate广场五月交易分享

‍# Japanese Government Bonds Go On-Chain 24-Hour Trading
Can everything be traded? - On-Chain Trading Landscape Expands Further

Entering 2026, the RWA industry is booming. First came the tokenization of stocks, then tokenized trading for gold and silver—now government bonds can also be traded on-chain 24 hours a day. Moreover, it uses “payment and delivery at the same time” T+0 trading. Let’s follow along with Xiao Caishen to see the underlying motivations and what it means for our crypto community.

👉 Why Push Government Bond Tokenization?

‌Avoid redundant construction and reduce systemic risk‌

If each bank were to issue stablecoins or run its own tokenization platform independently, it would result in inconsistent standards, poor interoperability, and even lead to vicious competition. Through coordinated action, the three major banks jointly invest to establish the‌ Progmat platform‌ and use it as a neutral technical carrier, ensuring that all participants follow the same set of rules and protocols.

‌Enhance trust and regulatory compliance‌

Government bond tokenization involves national core financial assets, so it requires a highly trustworthy governance structure. Joint endorsement by the three major banks and having‌ Mitsubishi UFJ Trust and Banking Corporation as the trustee‌ can effectively isolate conflicts of commercial interests and strengthen the market’s trust in on-chain government bonds.

‌Accelerate the adoption of enterprise-grade stablecoins‌

The three major banks together serve‌ more than 300,000 large enterprise clients‌. If each were to promote private systems independently, enterprises would need to integrate with multiple platforms—at high cost. With unified standards, enterprises can seamlessly use Japanese yen stablecoins for cross-border payments and settlement, significantly reducing operational complexity.

‌Meet the pressure from global digital finance competition‌

At present, the global stablecoin market is dominated by the US dollar, and the Japanese yen’s share is extremely low. Japanese financial authorities hope to build a‌ compliant, always-on, high-liquidity digital yen ecosystem‌ by using the “government bonds + stablecoins” model, improving the yen’s position in international payments and reserves.

‌Lay the payment foundation for the securities token market (ST)‌

In the top-level design of the Progmat platform, stablecoins are the “digital cash” that supports trading of securities tokens (such as real estate and bonds). The three major banks’ joint action is, in effect, filling in the most critical piece of the payment and settlement puzzle for the future on-chain asset trading market.

👉 How Big an Impact Will This Have on the Crypto Community?

‌Drive deeper integration between stablecoins and traditional finance‌

Backed by the‌ Progmat platform‌, the three major banks issue stablecoins backed by Japanese government bonds. This means the stablecoin’s underlying assets will be directly tied to sovereign bonds. This not only improves the credit quality of stablecoins, but also makes them a bridge connecting traditional capital markets and the blockchain ecosystem.

Similar to US dollar stablecoins (such as USDT and USDC), Japanese yen stablecoins may, in the future, buy large amounts of Japanese government bonds as reserves, thereby‌ boosting demand for Japanese government bonds‌.

If this “government bonds + stablecoins” model is widely adopted, it will form a new on-chain trading market for Japanese government bonds and increase their global liquidity.

‌Accelerate the construction of institutional-grade crypto financial infrastructure‌

The Progmat platform natively supports multiple public chains such as Ethereum, Polygon, and Avalanche, and provides a unified token format and compliance framework. This means:

Enterprises can achieve‌ cross-chain settlement and asset tokenization‌ in a multi-chain environment, reducing systemic risk.

On-chain trading enables “‌same-day settlement‌” and “‌24/7 trading‌,” greatly improving capital efficiency and challenging traditional T+2 clearing models.

‌Reshape the yen’s position in global digital finance‌

In today’s global stablecoin market,‌ over 98% are US dollar stablecoins‌—in essence, an extension of “digital dollars.” Japan’s move aims to break the dollar-dominant pattern:

By issuing yen stablecoins (such as JPYC), it increases the yen’s usage in cross-border payments, DeFi, and other scenarios.

If the stablecoins jointly issued by the three major banks are rolled out, it is expected that the issuance scale will reach‌ 1 trillion yen (about $6 billion) within three years‌, significantly increasing the yen’s international influence.

‌Overall impact on the crypto market‌

‌Positive effects‌: Institutional funds enter the on-chain market through compliant channels, improving market depth and stability; government bond tokenization reduces volatility and attracts more conservative investors.

‌Potential challenges‌: Stricter regulation may marginalize decentralized projects; high compliance costs could limit room for innovation.