Progmat partners with Canton developers to advance Japanese government bond tokenization

Japan’s security token platform Progmat signed a memorandum of understanding with U.S.-based Digital Asset Holdings to bring Japanese government bonds (JGBs) and other real-world assets onto the institutional Canton Network for on-chain trading and settlement. The first phase connects Progmat’s issuance and management platform to Canton and links it with the JGB transfer account ledger, aiming to create “tJGB” tokens that preserve the legal nature of book-entry bonds while enabling programmable, 24/7 settlement with finality. Progmat says it dominates Japan’s security token market, handling 51 of 103 publicly disclosed ST projects and ¥290.6 billion of ¥470.3 billion in total value. Its Digital Asset Co-creation Consortium, with 367 members, has more than 68 institutions in a tokenized JGB and on-chain repo working group that plans to enter a second live-validation phase in November, building a Canton sandbox for issuing tJGBs, tokenized deposits and stablecoins and connecting repo and collateral platforms. The effort matters because it tests whether Japan’s sovereign debt can settle atomically with digital money under existing law, following an August MUFG group collaboration on delivery-versus-payment and full repo lifecycle on-chain; next to watch is the November sandbox and progress toward commercialization with banks, trust banks, securities firms and money market brokers.