Progmat partners with Canton developers to advance Japanese government bond tokenization
on November 9, according to CoinPost, Japanese security token issuance platform Progmat signed a Memorandum of Understanding (MOU) with US-based Digital Asset Holdings. The collaboration will focus on the on-chain trading and settlement of real-world assets (RWAs) such as Japanese government bonds (JGBs), leveraging the institutional-grade blockchain Canton Network developed by the latter.
The initial phase involves integrating Progmat’s asset issuance and management platform with Canton, while simultaneously advancing connectivity with the Account Transfer Book for government bonds. The objective is to realize “tJGB,” which preserves the legal characteristics of transferred government bonds by enabling 7x24-hour settlement through programmable tokens, all while maintaining the finality of rights transfer and settlement. Progmat claims a dominant position in Japan’s ST issuance market, having facilitated 51 out of 103 publicly disclosed ST projects, accounting for 290.6 billion yen out of the total 470.3 billion yen.
Operating under the Digital Asset Co-Creation Alliance (DCC, comprising 367 members) sponsored by Progmat, the “Tokenized Government Bonds and On-Chain Repo” working group has attracted participation from over 68 institutions. It plans to launch the second phase of live pilot testing in November, deploying a sandbox on Canton to issue tJGBs, tokenized deposits, and stablecoins, while progressively connecting to various repo and collateral platforms. In August, Mitsubishi UFJ Financial Group, alongside its affiliated banks, trust banks, and Mitsubishi UFJ Morgan Stanley Securities, announced a partnership with Progmat and Digital Asset to validate the delivery versus payment (DvP) settlement of government bonds and digital currencies, as well as the end-to-end on-chain lifecycle of repo transactions. Moving forward, all parties will drive commercialization initiatives targeting banks, trust banks, securities firms, and money market companies.