Mitsubishi UFJ Financial Group (MUFG) plans to introduce blockchain technology in fiscal year 2027 to enable instant settlement of Japanese government bond (JGB) repo transactions. The group intends to use tokenized deposits or stablecoins to shift the current T+1 settlement cycle to real-time settlement, a move aimed at improving capital efficiency for institutional investors. The initiative will draw on trading data from Mitsubishi UFJ Morgan Stanley Securities and combine the Progmat platform with Digital Asset's blockchain technology. Japan's JGB repo market currently holds an outstanding balance of roughly 270 trillion yen, with settlement limited to specific hours on business days. Instant settlement is expected to resolve the time-zone difficulties that overseas investors face when participating in the market. Reported via Techub News; originally from CoinPost.
Mitsubishi UFJ Financial Group (MUFG) says it will bring in blockchain technology in fiscal year 2027 to make settlement instant in Japan's government bond (JGB) repo market.
The group plans to rely on tokenized deposits or stablecoins to cut the current T+1 settlement cycle down to real-time settlement. The aim is simple: better capital efficiency for institutional investors. The project will use trading data from Mitsubishi UFJ Morgan Stanley Securities and pair the Progmat platform with Digital Asset's blockchain technology.
Japan's JGB repo market has an outstanding balance of about 270 trillion yen, and settlement right now happens only during set hours on business days. Shift that to instant settlement, and the time-zone headache for overseas investors in this market could ease. (CoinPost, via Techub News)
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