#Japan #Blockchain #Tokyo #Secured Finance #Japan Government Bonds

Secured Finance Collaborates with Major Financial Institutions

On August 13, 2026, Secured Finance AG, under the leadership of Founder & CEO Masakazu Kikuchi, announced its involvement in a pioneering experiment led by Mitsubishi UFJ Trust and Banking Corporation. This initiative aims to leverage blockchain technology through the Canton Network alongside Digital Asset Holdings, LLC, and Progmat, Inc. The project focuses on transitioning repo transactions of Japanese Government Bonds (JGB) onto the blockchain.

Key Points of the Experiment

1. Collaboration for On-Chain Repo Transactions: Secured Finance will provide its lending protocols for the on-chain implementation of the life cycle of Japanese Government Bond repo transactions. This collaboration aims to maintain the legal essence of JGBs as transferable bonds while enabling a seamless on-chain repo process.
2. End-to-End On-Chain Processes: The experiment seeks to automate the complete process of repo transactions—from agreement and settlement to collateral management and valuation—all executed on the Canton Network using smart contracts. This follows a broader trend in the West where the on-chain transformation of government bond repos is gaining momentum.
3. Adapting Proven EVM Designs to Canton: Drawing from its experience on Ethereum-based chains, Secured Finance plans to implement a robust privacy and permission model suitable for institutional investors, thus localizing its EVM-based designs to fit the Canton Network's requirements.

The Rising Tide of On-Chain Repo Transactions

The repo market plays a crucial role in the financial infrastructure, facilitating short-term funding, collateral management, and liquidity provision for financial institutions. In recent years, particularly in the US, the integration of on-chain solutions has accelerated as institutions seek enhanced operational efficiencies and real-time settlement capabilities. For example, Broadridge’s Distributed Ledger Repo processed an impressive average of $357 billion daily transactions in June 2026, sounds the alarm about the transformative potential of on-chain technology.

Moreover, a working group, spearheaded by Digital Asset within the Canton Network, has successfully conducted fully on-chain financing transactions for tokenized US Treasuries—24 hours a day, year-round, including weekends—showing the technology’s viability and the demand for such infrastructures.

With Japanese Government Bonds being a cornerstone asset due to their high liquidity and credit quality, the pressure is mounting for similar on-chain transitions in Japan. However, aligning with existing regulatory frameworks and operational practices is essential for successful implementation. Secured Finance aims to treat the JGB repo transaction lifecycle as a cohesive on-chain experience, rather than merely tokenizing JGBs.

Secured Finance has been an active participant in the discussions surrounding tokenized government bonds and on-chain repo markets since May 2026, indicating a deep commitment to facilitating the transition toward commercially viable on-chain solutions in Japan.

Responsibilities of Secured Finance in this Initiative

As a key player in this experiment, Secured Finance will deploy its lending protocol to automate various processes involved in repo transactions. This includes:

• - Recording and agreeing on transaction terms.
• - The initial settlement between JGBs and digital money.
• - Ongoing market valuation and collateral management.
• - Final settlement of transactions, including repayments and return of bonds.

Engineering the Future on Canton

With over three years of operational experience in EVM networks that include fixed-rate transactions and collateral management, Secured Finance is well-equipped to transform its approach within the Canton Network. The protocol will focus on essential features required by institutional players, ensuring privacy through selective disclosures and implementing robust permissions for market participants.

Secured Finance aims to establish a sophisticated on-chain repo market infrastructure through this demonstration, with an eye on rapid commercialization to enhance the on-chain financial ecosystem in Japan and bolster its international competitiveness.

Leadership Insights

Masakazu Kikuchi, Founder & CEO of Secured Finance, expressed his excitement about the collaboration with Mitsubishi UFJ Trust Bank, Digital Asset, and Progmat, noting the significance of implementing on-chain solutions for the entire lifecycle of repo transactions. He emphasized the potential value of on-chain technology to connect real-time collateral management, valuation, and settlement seamlessly.

Similarly, Akio Nishizawa, Executive Officer at Mitsubishi UFJ Trust Bank, highlighted the importance of blending extensive market infrastructure knowledge with innovative technologies to create a trustworthy next-generation financial market. The joint experiment is a vital step toward achieving this goal. Yuval Rooz, Co-Founder & CEO of Digital Asset, recognized Japan's pivotal role in global financial markets and expressed pride in supporting the on-chain transformation of repo transactions.

Tatsuya Saito, Founder and CEO of Progmat, remarked on the significance of tokenized JGBs and on-chain repos as crucial themes that could define the evolution of Japan's capital market infrastructure. He underscored the company's commitment to implementing learned lessons from the experiment to contribute to a reliable and efficient on-chain financial market.

Future Developments

Secured Finance will continue to advance its on-chain implementations for tokenized JGB repo transactions while working on the commercialization of on-chain financial infrastructures targeted at institutional investors. Updates on their progress will be communicated at appropriate intervals in consultation with participating stakeholders.