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Zenith joins working group to tokenise JGB repo market onchain
24 June 2026 Japan
Image: Shinjuku/stock.adobe.com
Zenith, the Ethereum and Solana Virtual Machine execution layer for Canton Network, has joined Progmat’s ‘Tokenized JGB / On-chain Repo Working Group’.
This consortium aims to revolutionise one of the world’s largest repo markets by moving tokenised Japanese government bonds (TJGBs) and repo transactions onto institutional-grade blockchain solutions.
Launched under the Digital Asset Co-Creation Consortium, the working group unites several firms including MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, State Street Trust and Banking, SBI Securities, and Japan Exchange Group’s Market Innovation & Research.
The group is conducting a joint study on tokenising rights to JGBs and enabling fully onchain repo transactions using tokenised JGB collateral paired with stablecoin cash legs via lending protocols.
Heslin Kim, co-founder and chief business officer at Zenith, says: “As the canonical Ethereum-compatible execution layer for Canton Network, Zenith enables institutions and developers to natively deploy applications and customisable virtual blockchains that work seamlessly with Canton’s compliant, privacy-enabled infrastructure.
“This collaboration positions us at the forefront of bringing real-world assets on-chain and could transform liquidity in Japan’s US$1.6 trillion repo market for global investors.”
Key innovations targeted include T+0 instant settlement, true 24/7 availability, and seamless cross-border access, unlocking new liquidity in Japan’s JGB repo market.
According to Zenith, this accounts for roughly 10 per cent of the global government bond-backed repo market (estimated at approximately US$16 trillion).
This initiative comes as tokenised securities in Japan have surpassed 333–360 billion Japanese yen in cumulative issuance, predominantly real estate-focused.
The Progmat-led effort now aims to scale institutional-grade tokenised JGBs, potentially capturing a significant share of the US$1.7 trillion repo ecosystem onchain.
The working group launched in May 2026, with a comprehensive report expected in October 2026 and potential TJGB issuance pilots targeted for later this year.
Zenith will contribute actively to key areas including protocol design, interoperability standards, and regulatory compliant infrastructure.
This consortium aims to revolutionise one of the world’s largest repo markets by moving tokenised Japanese government bonds (TJGBs) and repo transactions onto institutional-grade blockchain solutions.
Launched under the Digital Asset Co-Creation Consortium, the working group unites several firms including MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, State Street Trust and Banking, SBI Securities, and Japan Exchange Group’s Market Innovation & Research.
The group is conducting a joint study on tokenising rights to JGBs and enabling fully onchain repo transactions using tokenised JGB collateral paired with stablecoin cash legs via lending protocols.
Heslin Kim, co-founder and chief business officer at Zenith, says: “As the canonical Ethereum-compatible execution layer for Canton Network, Zenith enables institutions and developers to natively deploy applications and customisable virtual blockchains that work seamlessly with Canton’s compliant, privacy-enabled infrastructure.
“This collaboration positions us at the forefront of bringing real-world assets on-chain and could transform liquidity in Japan’s US$1.6 trillion repo market for global investors.”
Key innovations targeted include T+0 instant settlement, true 24/7 availability, and seamless cross-border access, unlocking new liquidity in Japan’s JGB repo market.
According to Zenith, this accounts for roughly 10 per cent of the global government bond-backed repo market (estimated at approximately US$16 trillion).
This initiative comes as tokenised securities in Japan have surpassed 333–360 billion Japanese yen in cumulative issuance, predominantly real estate-focused.
The Progmat-led effort now aims to scale institutional-grade tokenised JGBs, potentially capturing a significant share of the US$1.7 trillion repo ecosystem onchain.
The working group launched in May 2026, with a comprehensive report expected in October 2026 and potential TJGB issuance pilots targeted for later this year.
Zenith will contribute actively to key areas including protocol design, interoperability standards, and regulatory compliant infrastructure.
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