Canton Network has spent the year proving that US Treasuries can live on a blockchain and still do their day job. Now it wants to try the same trick with the rest of the world’s government debt.
The network, built by Digital Asset, is exploring European and Asian government bonds. It is also working with banks to issue deposit tokens. That second piece matters as much as the first, because a tokenized bond is only half a trade.
From Treasuries to gilts and JGBs
The starting point is US government debt. Canton has launched tokenized US Treasuries for repo transactions as of August 2026, with the tokens serving as collateral for repo and financing deals.
The next targets on Canton’s list are European government bonds, including UK Gilts and EuroGovs. On the Asian side, the focus includes Japanese Government Bonds, known in the trade as JGBs.
Some of that groundwork is already visible. In January 2026, cross-border repo transactions were carried out using tokenized UK Gilts on LSEG’s platform.
In Japan, proofs of concept for JGBs as digital collateral began in April 2026. The participating banks include MUFG, Mizuho and Nomura, which is roughly the Japanese banking establishment showing up for a pilot.
Pilot projects tied to the network have also featured MUFG, LSEG and Euroclear. Multi-institution tests in early 2026 focused on cross-border and cross-currency repo using tokenized deposits and gilts.
Why deposit tokens are the quiet headline
A deposit token is a blockchain representation of a regular commercial bank deposit. It is still bank money, issued by a bank, under existing legal frameworks. It just travels on the same network as the asset it is buying.
Canton’s work on deposit tokens is aimed at helping banks line up their tokenized bonds with cash leg operations while staying inside current legal rules.
When both sides of a trade live on one ledger, settlement can be atomic. That means the bond and the cash swap at the same moment, or neither moves at all.
The infrastructure supports on-chain repo around the clock. Traditional bond markets keep business hours, so a 24/7 venue for moving collateral is a meaningful change for desks that need liquidity on a Saturday.
The DTCC factor and Canton’s track record
The biggest name in the US story is arguably the Depository Trust & Clearing Corporation. DTCC plans to roll out a tokenization service that will include a select group of US Treasuries represented on Canton.
That rollout is expected in the fourth quarter of 2026, with 25 initial securities targeted.
Canton-connected platforms have also historically handled more than 50% of global digital bond issuances.
What this means
The most direct effect is on collateral mobility. Banks that hold Treasuries, gilts and JGBs across different custodians and time zones often struggle to move that collateral quickly to where it is needed.
There are risks in the timeline as well. Several of the key milestones are still proofs of concept or planned rollouts, including the JGB work and the DTCC service.
The things to track from here are fairly concrete. Watch whether DTCC’s Treasury service goes live on schedule in the fourth quarter. Watch whether the Japanese bank trials graduate into live repo activity. And watch which banks actually issue deposit tokens on Canton, since the cash leg will decide whether any of this scales.
Disclosure: This article was edited by Kaye Quema. For more information on how we create and review content, see our Editorial Policy.