Japan’s major financial players — including Mizuho Financial Group and Nomura Holdings — have launched a pilot program to test how blockchain can be used to manage government bond collateral. The experiment runs on the Canton Network and focuses on enabling faster, more efficient transfers of Japanese government bonds between institutions.

The goal is to modernize how bonds are traded and used as collateral by allowing near-instant settlement and even 24/7 trading across global markets. Importantly, the bonds will still retain their legal status as traditional securities during the test, ensuring compliance while exploring new technology.