Mizuho, Nomura and JSCC Test Japanese Government Bonds as Collateral on Canton
The proof of concept with Digital Asset checks whether JGB collateral can move 24/7 on a blockchain while keeping its legal status under Japan's Book-Entry Transfer Act.
Mizuho Financial Group, Nomura Holdings, Japan Securities Clearing Corporation (JSCC) and Digital Asset announced on 20 April 2026 a proof of concept for managing Japanese government bonds (JGBs) as collateral on the Canton Network. JSCC is the clearing house of Japan Exchange Group.
What the trial tests
According to the joint release, the proof of concept will:
- Check the legal mechanics. Rights in JGBs are transferred under Japan's Book-Entry Transfer Act. The trial examines, legally and in practice, whether transfers of those rights and updates to book-entry records can work on a blockchain across a hierarchy of account management institutions.
- Test real-time collateral. It assesses whether collateral transactions can run in real time, 24 hours a day, while the bonds keep their status under the Book-Entry Transfer Act and the Financial Instruments and Exchange Act.
- Include cross-border use. It covers transfers among clearing houses, institutional investors, clients and agents, inside and outside Japan.
- Look at what would have to change. The partners will review related laws, internal rules and the functions needed before any commercial use.
The release says the infrastructure runs on Canton, supported by Digital Asset. It gives no start date, end date or transaction figures.
The policy backdrop
The project was selected in February 2026 for support under the Financial Services Agency's Payment Innovation Project, according to the release. The Block reported that the companies called progress on JGB collateral management an "urgent priority", as overseas markets, in particular the US, build similar infrastructure.
The release names the chief executives of the four participants: Masahiro Kihara of Mizuho, Kentaro Okuda of Nomura, Isao Hasegawa of JSCC and Yuval Rooz of Digital Asset.
How it fits
The trial joins other collateral work on Canton. Since 2025, an industry working group of banks and market infrastructures has run intraday repo transactions on the network using US Treasuries, European government bonds and, in February 2026, tokenized UK gilts.
Why it matters
JGBs are the core collateral of Japan's financial system. A trial run by the country's main clearing house together with two of its largest financial groups is a test of whether a public, privacy-enabled network can carry legally recognised government bond collateral, rather than tokenized copies of it. The answer will depend as much on the legal review as on the technology.
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