According to a report by Coinfomania on May 8 citing public information, the “Digital Asset Co-Creation Alliance” (DCC), with blockchain infrastructure company Progmat—an entity under the MUFG (Mitsubishi UFJ Financial Group) financial group—serving as the secretariat, launched working groups in May. The plan is to buy back and bring the market online by the end of 2026. The scale of Japan’s repo market is about $1.6 trillion, accounting for 10% of the global $16 trillion repo market.
Consortium Members and Progmat Blockchain Infrastructure
According to public information, Progmat was founded by MUFG and is supported by Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank. The DCC working group includes the following institutions: MUFG (Mitsubishi UFJ Financial Group), Mizuho Bank, SMBC (the three largest banks in Japan), as well as BlackRock Japan, Daiwa Securities, SBI Securities, State Street Trust Bank, and Tokio Marine Holdings.
In addition, according to public reporting, MUFG, SMBC, and Mizuho Bank have been approved to test yen-denominated stablecoins, with the goal of launching them on the Progmat blockchain for on-chain settlement in the repo market.
T+0 Settlement Mechanism and Implications for Capital Regulation
According to the DCC’s public briefing, the core objective of this plan is to combine tokenized Japanese government bonds with on-chain stablecoins, and to complete atomic settlement through the Progmat blockchain to achieve 24/7 real-time liquidity—thereby replacing the current T+1 mechanism (settlement on the next business day).
From the perspective of capital regulation, according to the DCC’s explanation, T+0 positions can be opened and closed in full within a single trading day and will not remain on the end-of-day balance sheet. This could mean related trades are not subject to capital adequacy ratio rules, thereby affecting the risk weights and leverage ratio calculations currently used to limit banks’ active participation in the repo market.
Global Backdrop: DTCC’s Tokenized U.S. Securities Data
According to public information, the U.S. clearinghouse DTCC (Depository Trust & Clearing Corporation) has processed more than $330 billion worth of tokenized U.S. Treasuries transactions. If Japan’s DCC consortium completes its rollout by the end of 2026 as planned, it will introduce Japanese repo market participants with a scale of about $1.6 trillion into the global tokenized government bond market.
FAQs
What are the main member institutions and core technology platform of the DCC consortium?
According to public information, the DCC is served by Progmat as the secretariat. Progmat was founded by MUFG and supported by SMBC and Mizuho Bank. Working group members include MUFG, Mizuho Bank, SMBC, BlackRock Japan, Daiwa Securities, SBI Securities, State Street Trust Bank, and Tokio Marine Holdings.
What is the specific timeline for the DCC’s tokenized repo market plan?
According to public reporting, the DCC working group launched in May 2026; a formal report covering legal, tax, and operational issues is planned for release in October 2026; the target go-live time for the full system is the end of 2026.
What are the potential impacts of T+0 settlement on the calculation of capital adequacy ratios for Japanese banks?
According to the DCC’s public briefing, T+0 positions can be opened and closed in full within the same trading day and will not be held on the end-of-day balance sheet. This could mean that relevant repo transactions are not subject to capital adequacy ratio rules, impacting the risk weights and leverage ratio calculations currently used to limit banks’ active participation in the repo market.
