TOKYO: Japan’s Ministry of Finance said on Wednesday it will launch a study group next month to examine whether Japanese government bonds (JGBs) should be adapted for “on-chain” trading using blockchain technology.
The study group will assess the potential benefits, costs and market impact of bringing JGB-related transactions onto a blockchain, a senior ministry official told a briefing.
On-chain functionality, including faster settlement, could for example facilitate the immediate use of government bonds as collateral in repo transactions, the official said.
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