JSCC Leverages Canton Network to Pioneer 24/7 Real-Time Collateral Settlements

The Japan Securities Clearing Corporation (JSCC) is moving to modernize the architectural backbone of Japanese finance, announcing a strategic initiative to implement a blockchain-based settlement layer. In collaboration with Mizuho, Nomura, and technology partner Digital Asset, the JSCC is transitioning toward a more resilient, instantaneous clearing environment.

By utilizing the Canton Network, JSCC aims to move beyond traditional operating hours to achieve 24/7 real-time collateral settlements. This digital transformation streamlines the flow of book-entry transfer records between direct participants and indirect participants, both within Japan and across international markets.

The proposed infrastructure creates a seamless pipeline for transfer instructions:

• Clients initiate instructions that flow through Indirect Participants (domestic and global).
• These instructions are validated and processed by Direct Participants within a unified blockchain settlement layer.
• The result is a synchronized, transparent ledger that eliminates the delays inherent in legacy systems.

For JSCC, this transition is about providing its members and their clients with enhanced liquidity management and reduced counterparty risk. By integrating the expertise of Japan’s leading financial institutions with Digital Asset’s distributed ledger technology, the JSCC is ensuring that the Japanese market remains a global leader in FinTech innovation.

JSCC to promote standardization of regulatory reporting through DRR & CDM

The JSCC plans to begin production-parallel operations of its regulatory reporting to the FSA and the CFTC from June 2025 onwards.

Japan FinTech ObserverNorbert Gehrke