Mizuho, Nomura, JSCC and Digital Asset Holdings Launch Proof-of-Concept Trial For Digital Collateral Management | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis
Mizuho Financial Group, Nomura Holdings, Japan Securities Clearing Corporation, and Digital Asset Holdings have announced a joint proof-of-concept trial to explore the use of blockchain technology for collateral management of Japanese government bonds, with the aim of enabling real-time, 24-hour cross-border transactions.
The trial will run on the Canton Network, a blockchain platform purpose-built for institutional finance, and will examine whether the transfer of rights and updates to book-entry transfer records across a hierarchical structure of account management institutions can be executed seamlessly using distributed ledger technology.
A central focus of the project is determining whether sophisticated, real-time collateral transactions can be achieved on a round-the-clock basis while preserving the legal status of Japanese government bonds under Japan’s Book-Entry Transfer Act and the Financial Instruments and Exchange Act. The trial will also cover cross-border use cases involving clearing houses, institutional investors, clients, and agents both within and outside Japan.
The initiative has been selected for support under the Payment Innovation Project of Japan’s Financial Services Agency, announced in February 2026.
The four organisations said that as digital asset adoption accelerated in the United States and other markets, ensuring Japanese government bonds, widely regarded as high-quality eligible collateral by institutional investors globally, remained accessible and liquid in the digital environment had become an urgent priority.
The participants said a successful outcome could significantly reduce the administrative burden associated with posting and substituting collateral, lowering costs for financial institutions and investors while strengthening the international competitiveness of Japan’s financial markets.
