Progmat, BlackRock Japan, MUFG, Mizuho Join Initiative to Digitize JGB Repo Market With T+0 Settlement

On May 8, Japanese fintech firm Progmat launched a working group with over 40 institutions including BlackRock Japan, major banks MUFG and Mizuho, and leading securities firms to explore tokenizing Japanese government bonds (JGBs) on blockchain. The initiative aims to enable instant repo settlement using stablecoins, allowing both legs of bond lending transactions to settle on the same day (T+0) instead of the current T+1 standard. This would allow institutional capital to be deployed and retrieved before market close. The working group will examine legal, tax, and technical requirements, with a formal report due in October 2026 and potential commercial issuance projects targeted for completion by year-end.