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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ME News report: On April 20 (UTC+8), Mizuho Financial Group, Nomura Holdings, the Japan Securities Clearing Corporation (JSCC), and Digital Asset Holdings announced that they will jointly launch a blockchain-based collateral management enhancement pilot experiment. This pilot will use the Canton Network, which is designed specifically for institutional finance, to explore the use of Japanese Government Bonds (JGBs) for digital collateral management. The purpose of this pilot is to validate the feasibility of using blockchain technology to manage rights transfers and update ledgers across multiple accounts and institutions, and to enable real-time cross-border collateral transactions 24 hours a day, 365 days a year, while maintaining the legal nature of JGBs as issued securities. The project forms part of the support provided under Japan’s Financial Services Agency’s “Payment Innovation Project (PIP),” aiming to improve the efficiency of cross-border collateral management, reduce business costs for financial institutions and investors, and enhance the international competitiveness of Japan’s financial market. (Source: Foresight News)
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