Mitsubishi UFJ Financial Group has started a proof of concept on the Canton Network to process Japanese government bond repo transactions on-chain, with MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and Mitsubishi UFJ Trust and Banking working alongside Digital Asset Holdings and Progmat. The trial is designed to automate more of the repo lifecycle and test real-time intraday settlement available 24 hours a day, potentially improving funding, capital and operational efficiency in a JGB repo market estimated at roughly 250 trillion yen to 270 trillion yen. The project sits within Japan's Financial Services Agency-backed Payment Innovation Project, launched in November 2025 and expanded in February 2026 to cover advanced securities settlement, stablecoins and tokenized deposits, and it builds on earlier Canton tests of JGB collateral as well as Progmat's tokenized JGB and on-chain repo working group. MUFG has previously said the bonds themselves can remain within Japan's existing book-entry framework while blockchain coordinates settlement, and the group has pointed to commercial rollout from fiscal 2027 if the model proves viable.