JSCC to Test Japanese Government Bonds as Digital Collateral on Canton Network

Uk Jin

Summary

Japan Securities Clearing Corp., or JSCC, said it will begin a proof of concept with Mizuho, Nomura Holdings and Digital Asset to test the use of Japanese government bonds as digital collateral.
The proof of concept will be conducted on the Canton Network (CC) and will assess whether Japanese government bonds can be transferred and managed on-chain while complying with relevant laws and regulations.
The project will test whether existing systems can be connected to blockchain infrastructure to support 24-hour real-time collateral transactions and potential cross-border transactions.

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Japan Securities Clearing Corp. said April 20 that it will begin a proof of concept with Mizuho, Nomura Holdings and Digital Asset to test the use of Japanese government bonds as digital collateral.

The proof of concept will be conducted on the Canton Network.

The project will assess whether Japanese government bonds can be transferred and managed on-chain while remaining compliant with Japan's Book-Entry Transfer Act and the Financial Instruments and Exchange Act.

It will also test whether existing systems can be connected to Canton's blockchain infrastructure to enable more sophisticated real-time collateral transactions on a 24-hour basis. The trial will also examine potential use in cross-border transactions.

Japan's Financial Services Agency selected the initiative for support in February under its payment innovation project, part of the FinTech Proof-of-Concept Hub.