MUFG launches blockchain experiment for JGB repo transactions

Four companies within the Mitsubishi UFJ Financial Group (MUFG) have launched a proof-of-concept to conduct Japanese Government Bond (JGB) repo transactions onchain. The initiative involves Mitsubishi UFJ Financial Group, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking, and MUFG Bank.

The project utilizes the Canton Network, an enterprise blockchain platform, with support from Digital Asset and Progmat. The experiment aims to transition the transaction lifecycle from independent operations to a common digital infrastructure, covering everything from execution to settlement.

Key objectives of the proof-of-concept include achieving faster, real-time intraday settlements on a 24/7 basis, increasing automation, and enhancing both funding and capital efficiency within the fixed-income market.