Four MUFG companies plan to bring Japanese government bond repo transactions onchain using the Canton Network, as part of a new proof of concept (PoC).
The four companies, including MUFG, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust and Banking and MUFG Bank, will collaborate with Digital Asset Holdings and Progmat for the PoC, according to a Thursday announcement.
The companies said they seek to improve operational efficiency through automation of the transaction lifecycle, enable real-time intraday settlement 24/7, as well as enhance funding and capital efficiency.
The initiative is part of the Payment Innovation Project pilot announced by Japans Financial Services Agency in February 2026, aimed at helping fintech firms run PoCs on advanced payment technologies such as blockchain-based solutions, stablecoins, tokenization and onchain settlement.
MUFG has been extending its push into blockchain. In June 2023, the financial services firm announced that its stablecoin issuance platform “Progmat Coin” will be used by banks to launch Japanese yen-pegged stablecoins on several public blockchains.
MUFG dropped its blockchain payments project GO-Net Japan in February 2022 to focus on its stablecoin initiatives.
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