Japan
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Tokenizing Japanese Government Bonds: Progmat's Saito Says Live-System Testing Will Verify 'Economic Rationality'
- 69 organizations, including Japan's three megabanks, have participated in the working group since it began deliberations in May 2026; Japan's domestic JGB repo market exceeded 250 trillion yen as of end-2024.
- The group proposes enabling 24-hour settlement via repo transactions outside clearing institutions while preserving existing contractual frameworks, aiming to expand trading opportunities for overseas investors who currently must finalize instructions a business day in advance.
- Live verification is targeted to begin in November on a Canton Network test environment, with a new interim report planned for spring 2027; the main proposal keeps JGBs' legal structure unchanged by introducing new 'on-chain management accounts' linked to blockchain, rather than tokenizing rights tied to transfer-registered bonds as originally floated in May.