Launch of proof-of-concept trial for digital collateral management using Japanese government bonds (JGBs)

The PoC focuses on Japanese government bonds ("JGBs"), the rights of which are transferred under the Act on Book-Entry Transfer of Corporate Bonds and Shares ("Book-Entry Transfer Act"). The project will determine, from both legal and practical perspectives, whether blockchain technology can be used to smoothly transfer rights and update book-entry transfer records within a hierarchical structure involving multiple account management institutions.

By integrating existing systems with the blockchain infrastructure on Canton, which is supported by DA Holdings, the PoC will test if sophisticated, real-time collateral transactions can be conducted 24/7, while maintaining the legal status of JGBs under the Book-Entry Transfer Act and the Financial Instruments and Exchange Act.

The PoC will also cover cross-border transactions involving stakeholders in Japan and outside the country. It will examine use cases involving the transfer of collateral among various parties, including clearing houses, institutional investors, clients, and agents.

Additionally, the project will consider how various laws and regulations, including the Book-Entry Transfer Act, may apply; examine whether amendments to the relevant internal rules and regulations are necessary; and identify any functional improvements required for commercialization.

The PoC will be conducted as part of an initiative that was selected by the Financial Services Agency of Japan in February 2026 for support under its Payment Innovation Project (PIP).