Implementing the full repo transaction lifecycle on the Canton Network, toward early commercialization of institutional-grade on-chain financial market infrastructure. 

Zug, Switzerland / Tokyo — August 13, 2026
Secured Finance AG (Founder & CEO: Masakazu Kikuchi; “Secured Finance”) announces its participation in the proof-of-concept (“PoC”) for bringing on-chain Japanese Government Bond (“JGB”) repo transactions using the Canton Network, a blockchain purpose-built for institutional finance, launched by Mitsubishi UFJ Trust and Banking Corporation (“Mitsubishi UFJ Trust and Banking”), together with Digital Asset Holdings, LLC (“Digital Asset”) and Progmat, Inc. (“Progmat”). In the PoC, Secured Finance will provide the lending protocol that implements the full repo transaction lifecycle on-chain.

Three Key Points

• Participating as the lending protocol provider in the PoC for on-chain JGB repo transactions led by Mitsubishi UFJ Trust and Banking, Digital Asset, and Progmat
  In this PoC — which brings repo transactions on-chain while preserving the legal nature of JGBs as book-entry transfer bonds — Secured Finance is responsible for implementing the full repo transaction lifecycle within its lending protocol.
• Completing the full sequence of processes on-chain, from trade agreement through collateral management, valuation, and closing-leg settlement
  Building on the momentum of on-chain government bond repo overseas, the PoC aims to complete tokenized JGB repo transactions entirely on-chain, across the full transaction lifecycle, through smart contracts running on the Canton Network.
• Bringing the design philosophy proven on EVM chains to Canton, with institutional-grade privacy and permissioning
  Secured Finance will redesign the market architecture it has built and operated on EVM-based chains for the Canton Network, incorporating the privacy (selective disclosure), information barriers, and permissioning models that institutional investors require — with the goal of early commercialization.

Background: On-Chain Government Bond Repo Is Moving from Pilots to Production

Government bond repo markets are core market infrastructure supporting short-term funding and investment, collateral management, and liquidity provision for financial institutions. Overseas, bringing government bond repo on-chain has advanced rapidly, driven by operational efficiency through lifecycle automation and improved funding and capital efficiency through real-time settlement.

In the United States, intraday (starting and ending on the trading day) U.S. Treasury repo is already operating as a commercial service: Broadridge’s Distributed Ledger Repo (DLR) platform reported processing an average of $357 billion in daily repo transactions in June 2026, totaling $7.5 trillion for the month (source: Broadridge press release, July 7, 2026).

On the Canton Network, in August 2025, an industry working group led by Digital Asset — including Bank of America, Citadel Securities, DTCC, Société Générale, and Tradeweb — completed fully on-chain U.S. Treasury financing transactions using tokenized U.S. Treasuries and stablecoins, executed on a 24/7 basis including outside market hours and over weekends. In December 2025, DTCC, the U.S. securities settlement infrastructure, announced plans to tokenize DTC-custodied U.S. Treasury securities on the Canton Network (sources: public announcements by the respective companies).

Given their high creditworthiness and liquidity, JGBs are widely used as repo collateral by market participants in Japan and overseas, and momentum for bringing them on-chain is growing. At the same time, because Japan’s existing legal and settlement infrastructure for JGBs is highly developed, on-chain adoption that generates real demand requires designing the full transaction lifecycle in a manner consistent with existing practices, contracts, and risk management. This PoC aims not merely to represent JGBs as tokens, but to handle the repo transaction lifecycle itself in an integrated manner on-chain.

Secured Finance has participated, in the lending protocol area, in the Progmat/DCC “Tokenized JGB / On-Chain Repo Working Group” since May 2026, and positions this PoC as an initiative that moves on-chain JGB repo into the implementation phase, in step with that cross-industry work.

Secured Finance’s Role in the PoC

One of the themes of the PoC is the on-chain implementation of the full repo transaction lifecycle. Secured Finance provides the lending protocol for this theme, automating the full sequence of repo processes.

A lending protocol is a mechanism that automates collateralized funding transactions through smart contracts (programs that run on a blockchain and automatically execute transactions and state updates according to predefined rules). Secured Finance’s protocol is designed to handle, in an integrated manner on-chain, processes constituting the repo transaction lifecycle, such as:

• Agreement and recording of trade terms

• Opening-leg settlement (DvP of JGBs and digital money)

• In-life valuation and collateral management

• Closing-leg settlement (repayment of funds and return of JGBs)

From EVM to Canton: Implementing Institutional-Grade On-Chain Financial Infrastructure

Secured Finance has developed and operated a lending protocol on Ethereum and other EVM-based chains, implementing market functions including fixed-rate transactions, maturity management, an order book, and collateral management, with more than three years of mainnet operation.

In this PoC, rather than simply porting these functions, Secured Finance will redesign and implement them as smart contracts on the Canton Network — a blockchain purpose-built for regulated financial markets — incorporating the elements essential for institutional use: privacy through selective disclosure (whereby only transaction parties and other authorized participants can access the information they need), information barriers between participants, and permissioning models governing transactions and participation eligibility.

Through this PoC, Secured Finance aims to establish the design and implementation of institutional-grade on-chain repo market infrastructure, targeting early commercialization and contributing to the development and international competitiveness of on-chain financial markets in Japan.

Comments

Masakazu Kikuchi, Founder & CEO, Secured Finance AG

“It is a great honor to join Mitsubishi UFJ Trust and Banking — one of Japan’s leading trust banks — together with Digital Asset and Progmat in this proof-of-concept to implement the full lifecycle of JGB repo transactions on-chain. For Secured Finance, being entrusted to provide the lending protocol that implements the repo transaction lifecycle is both a profound responsibility and a rare opportunity. Government bond repo is a foundational transaction underpinning liquidity and funding efficiency across financial markets, and the essential value of bringing it on-chain lies in connecting collateral management, valuation, and settlement in real time. We will bring to Canton the practical knowledge our team gained in traditional interest-rate markets, together with the design and operational expertise built through our lending protocol on EVM chains — with the privacy and permissioning models institutional investors require — and advance on-chain finance from concept to production-grade market infrastructure, starting from Japan.”

Akio Nishizawa, Executive Officer and General Manager, Frontier Business Development Division, Mitsubishi UFJ Trust and Banking Corporation

“By combining the expertise in asset administration and market infrastructure that we have cultivated over many years as a trust bank with the potential of new technologies and protocols, we aim to contribute to building sound and reliable next-generation financial market infrastructure. This PoC is an important step toward that goal, and we find it highly meaningful to take on this new initiative together with Secured Finance AG. We will seek to translate the insights and learnings gained through the PoC into real-world implementation and contribute to the development of an on-chain financial market that combines reliability and efficiency.”

Yuval Rooz, Co-Founder & CEO, Digital Asset Holdings, LLC

“The JGB market is one of the world’s largest and most important sources of collateral, underpinning liquidity and funding across global financial markets. By bringing the full repo lifecycle onchain, this initiative with Mitsubishi UFJ Trust and Banking, Progmat and Secured Finance demonstrates how Canton can enable real-time settlement, greater collateral mobility and more efficient markets while preserving the privacy and control regulated institutions require. We are proud to support Japan’s leadership in building the next generation of financial market infrastructure.”

Tatsuya Saito, Founder and CEO, Progmat, Inc.

“Tokenized government bonds and on-chain repo are critical themes that will shape the next evolution of Japan’s capital market infrastructure. This PoC — bringing the full repo transaction lifecycle on-chain while preserving the legal nature of JGBs as book-entry transfer bonds and settlement finality — is closely linked to the cross-industry discussions of the Tokenized JGB / On-Chain Repo Working Group under the Digital Asset Co-Creation Consortium (DCC), which Progmat organizes. Through analysis of existing market practices and productization of the underlying infrastructure, Progmat will contribute to charting the path toward commercialization.”

Looking Ahead

Through this PoC, Secured Finance will advance the on-chain implementation of tokenized JGB repo transactions and continue examining the technical and market-structure requirements for commercializing institutional on-chain financial infrastructure. Updates will be shared at appropriate times in consultation with the participating companies.

This release announces Secured Finance’s participation in the PoC. It does not announce the launch of any commercial service, nor does it constitute an offer or solicitation of any financial product. For the full scope of the PoC, please refer to the press release “Announcement of the Launch of a Proof-of-Concept for On-Chain Japanese Government Bond Repo Transactions” dated August 13, 2026, by Mitsubishi UFJ Trust and Banking Corporation and other participating companies.

About Secured Finance AG

Secured Finance AG is a Switzerland-based on-chain financial infrastructure company that develops protocols enabling collateralized funding transactions on blockchain. It implements market functions including fixed-rate transactions, maturity management, an order book, and collateral management. In addition to providing the collateral utilization infrastructure for UBS’s tokenized MMF “uMINT,” it has participated, in the lending protocol area, in the Progmat/DCC “Tokenized JGB / On-Chain Repo Working Group” since May 2026.

Web: https://secured.finance

About Mitsubishi UFJ Trust and Banking

Mitsubishi UFJ Trust and Banking Corporation is a trust bank and a member of Mitsubishi UFJ Financial Group, providing a broad range of trust services including asset management, asset administration, real estate, stock transfer agency, and inheritance-related services. In the digital asset space, it led the founding of Progmat, the digital asset issuance and management platform, and has pioneered initiatives toward the real-world implementation of tokenized financial assets, including security token administration and stablecoin-related frameworks.

About Digital Asset

Digital Asset (DA) is a leading innovator in blockchain technology and the creator of the Canton Network, a blockchain purpose-built for regulated financial markets, enabling privacy through selective disclosure and institutional-grade controls. Canton is governed by the Canton Foundation, an independent non-profit organization responsible for stewarding the network’s governance, of which DA is a founding member.

About Progmat

Progmat, Inc. provides “Progmat,” a digital asset issuance and management platform, and holds the leading domestic market share (by AuM of publicly offered security tokens under management, approximately ¥452.0 billion). It issued Japan’s first real estate security token in August 2021, became an independent company in October 2023, announced multi-chain support including migration of existing deals to Avalanche in February 2026, and announced a cross-industry study on JGB tokenization in May 2026.