Mitsubishi UFJ Financial Group (MUFG), Progmat and Digital Asset Holdings are launching a collaboration on a proof-of-concept to bring Japanese government bond repurchase transactions on-chain through Canton Network, according to a Thursday statement.

The proof of concept is among pilot programs under the payment innovation project, which is led by Japan's Financial Services Agency, MUFG said.

Under the collaboration, Digital Asset will provide the tokenization framework based on the Canton Network blockchain, while Progmat will support the application of blockchain technology to the bonds' book-entry transfers and in repurchase transactions, according to the statement.

No financial terms were disclosed.