JPMorgan Plans Blockchain Test for Real-Time Settlement of Japanese Government Bonds
Summary
- JPMorgan plans to test real-time execution and settlement of Japanese government bond trades on a blockchain-based system.
- JPMorgan sees blockchain as a way to shorten trading times for Japanese government bonds and repurchase agreements (repo) while improving efficiency.
- Mitsubishi UFJ Financial Group, or MUFG, plans to pursue a proof of concept (PoC) for trading Japanese government bonds on-chain using the institutional blockchain platform Canton Network.
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JPMorgan plans to test real-time execution and settlement of Japanese government bond trades on a blockchain-based system.
BlockBeats reported on August 13 that JPMorgan will trial a system that processes the execution and settlement of Japanese government bond transactions on blockchain.
The bank sees blockchain as a way to shorten settlement times for government bond trades and improve the efficiency of repurchase agreement, or repo, transactions backed by those bonds.
Japanese government bond trades currently typically take one to three business days to settle. Blockchain could allow real-time settlement 24 hours a day, seven days a week, including during weekends and overnight hours.
Mitsubishi UFJ Financial Group is also preparing a similar experiment. MUFG plans a proof of concept for on-chain trading of Japanese government bonds using the institutional blockchain platform Canton Network.
