Originally published by TechFlow on November 9, 2026, at 16:59:43 (UTC+8), citing CoinPost.
Japan’s security-token issuance platform Progmat signed a memorandum of understanding with U.S.-based Digital Asset Holdings to cooperate on onchain trading and settlement of real-world assets, including Japanese government bonds (JGBs). The initiative will use Canton Network, the institutional blockchain developed by Digital Asset.
The proposed use case: programmable bonds with legal continuity
The first step is to connect Progmat’s asset issuance and management platform to Canton while pursuing integration with the book-entry account ledger for Japanese government bonds.
The objective is a tokenized instrument called tJGB that retains the legal characteristics of book-entry government bonds. The proposal aims to make those bonds programmable and support round-the-clock settlement while preserving the transfer of rights and settlement finality. These are stated goals, not reported production capabilities.
Progmat described itself as the dominant platform in Japan’s security-token issuance market. Of 103 publicly disclosed security-token projects, it said it had handled 51. By value, its share was ¥290.6 billion out of ¥470.3 billion.
Participation and testing plans
The “Tokenized Government Bonds and Onchain Repo” working group has attracted at least 68 institutions. It operates under the Digital Asset Co-Creation Consortium (DCC), a Progmat-hosted organization with 367 members.
At the time of the report, the working group planned to enter its second phase of live-system testing in November. Plans included building a Canton sandbox capable of issuing tJGB, tokenized deposits and stablecoins, then progressively connecting multiple repo and collateral platforms.
From testing toward commercialization
In August 2026, Mitsubishi UFJ Financial Group, its banking and trust-banking entities, and Mitsubishi UFJ Morgan Stanley Securities had announced cooperation with Progmat and Digital Asset. That work was intended to test delivery-versus-payment (DvP) settlement between government bonds and digital currencies, alongside moving the full repo transaction lifecycle onchain.
The parties planned to pursue commercialization for banks, trust banks, securities firms and money-market brokers. The report describes an institutional RWA initiative centered on bond settlement and repo infrastructure; the memorandum, participation figures and testing plans do not establish that commercial deployment had been completed.
