Japanese banks are testing the tokenization of government bonds on the Canton Network (CC).

Mizuho, Nomura, Japan Securities Clearing Corporation, and Digital Asset Holdings have launched a pilot project to transfer Japanese government bonds (JGBs) onto the Canton Network blockchain. The goal is to enable round-the-clock trading of bonds as collateral assets while maintaining compliance with Japanese law. The results of the pilot are expected by September 30, 2026, and will determine the need for regulatory changes.

In parallel, the Japanese government is preparing legislation that will allow local governments to issue digital bonds.