Progmat partners with Digital Asset to advance the tokenization of Japanese government bonds and enable 24/7 settlement.

Japan’s digital asset issuance and management platform Progmat has signed a memorandum of understanding (MOU) with U.S.-based Digital Asset Holdings, planning to migrate the trading and settlement of real-world assets (RWA) including Japanese government bonds (JGBs) onto the blockchain via the institutional-grade Canton Network. The two parties’ first phase will focus on integrating Progmat’s platform with the Canton Network, developing tokenized JGB products (tJGB) that retain the existing legal attributes of Japanese government bonds, and linking with existing securities transfer ledger systems. While upholding the legal validity of JGB right transfers and settlement finality, they will explore enabling 24/7 on-chain settlement. The Digital Asset Creation Consortium (DCC) led by Progmat has established a dedicated working group, and plans to launch the second phase of live testing in November. This phase will test the issuance and management of test assets including tJGB, tokenized deposits, and stablecoins on the Canton Network, and gradually connect domestic and international repo trading and collateral platforms. Earlier, MUFG and its three subsidiary financial institutions also announced their participation in the cooperation, to verify the full on-chain process of delivery versus payment (DvP) for government bonds and digital assets, as well as repo transactions.