Secured Finance Joins Progmat/DCC's 'Tokenized JGB and On-chain Repo WG' in Lending Protocol Domain
Secured Finance AG announces its participation in the 'Tokenized JGB and On-chain Repo Working Group' organized by Progmat/DCC, contributing its expertise in lending protocols. This initiative aims to realize on-chain repo transactions for institutional investors using tokenized Japanese government bonds and stablecoins.
📋 Article Processing Timeline
- 📰 Published: May 8, 2026 at 20:00
- 🔍 Collected: May 8, 2026 at 11:31
- 🤖 AI Analyzed: May 8, 2026 at 12:09 (38 min after Collected)
Secured Finance AG (hereinafter 'Secured Finance') is pleased to announce its participation in the 'Tokenized JGB and On-chain Repo Working Group' (hereinafter 'this WG'), established within the 'Digital Asset Co-creation Consortium' (hereinafter 'DCC') organized by Progmat, Inc. (hereinafter 'Progmat'), as a prospective participant in the lending protocol domain.
This WG will examine on-chain repo transactions using Tokenized Japanese Government Bonds (Tokenized JGB, hereinafter 'TJGB') and stablecoins from legal, accounting, tax, practical, and technical perspectives. Secured Finance will contribute to the study of the institutional investor-focused on-chain repo market by providing expertise in on-chain lending, collateral management, fair value assessment, clearing and settlement, and transaction lifecycle design.
**Three Key Points**
1. **Participation in Progmat/DCC's 'Tokenized JGB and On-chain Repo WG'**
Secured Finance will participate in this WG as a prospective organization in the lending protocol domain.
2. **Consideration of On-chain Repo Transactions utilizing TJGB and Stablecoins**
This WG will organize the legal, accounting, tax, practical, and technical aspects of on-chain repo transactions using Tokenized Japanese Government Bonds and stablecoins.
3. **Contribution to the Study of On-chain Secured Financing Market for Institutional Investors**
As a lending protocol development company, Secured Finance will provide expertise in on-chain lending, collateral management, fair value assessment, clearing and settlement, and transaction lifecycle design.
**Background: Why Tokenized JGBs and On-chain Repo are Gaining Attention**
The government bond repo market is a critical market infrastructure supporting short-term funding and investment, collateral management, and liquidity provision by financial institutions. According to Progmat's announcement, the global repo market collateralized by government bonds had an outstanding balance of approximately $16 trillion at the end of 2024, with the Japanese market accounting for about 10% of the global total.
However, simply tokenizing Japanese government bonds is not easy to generate sufficient real demand, as Japan's existing institutional and settlement infrastructure is already highly developed. By combining tokenized government bonds and stablecoins, there is potential to form new market infrastructure that enables T+0 position building and closing, improved intraday capital efficiency, and integrated collateral management, fair value assessment, clearing, and settlement.
**Secured Finance's Role in this WG**
This WG will concretely organize the methodologies for TJGB and various transaction forms and participating entities for on-chain repo transactions using lending protocols, from legal, accounting, tax, practical, and technical perspectives.
As a prospective participant in the lending protocol domain, Secured Finance will contribute to the discussions in this WG by providing its expertise in the following areas:
* Design of on-chain lending markets
* Design of transaction lifecycles for financing collateralized by tokenized assets
* Protocol design for collateral management, fair value assessment, clearing, and settlement
* Consideration of transaction structures using stablecoins as the cash leg
* Definition of requirements for on-chain market infrastructure intended for institutional use
Source: Progmat, Inc. Press Release dated May 8, 2026, "Regarding the Commencement of Joint Study on 'On-chain Repo Transactions' for 'Tokenized Government Bonds'" p.4
**Significance of Market Design as Envisioned by Secured Finance**
Secured Finance believes that the significance of tokenized government bonds and on-chain repo goes beyond merely replicating existing repo transactions on-chain.
The key is to design a market infrastructure that connects high-quality collateral assets like government bonds, digital cash such as stablecoins, and the practicalities, contracts, and risk management required in existing financial markets, all in real-time.
If the entire transaction lifecycle—from collateral deposit, lending/borrowing, fair value assessment, clearing, repayment, to collateral release—can be handled integrally on-chain, it could lead to a new development in the secured financing market for institutional investors.
Secured Finance will contribute to the realization of on-chain financial infrastructure for institutional investors through the development of lending protocols and related technologies that are consistent with existing financial practices in such market design.
This WG will examine on-chain repo transactions using Tokenized Japanese Government Bonds (Tokenized JGB, hereinafter 'TJGB') and stablecoins from legal, accounting, tax, practical, and technical perspectives. Secured Finance will contribute to the study of the institutional investor-focused on-chain repo market by providing expertise in on-chain lending, collateral management, fair value assessment, clearing and settlement, and transaction lifecycle design.
**Three Key Points**
1. **Participation in Progmat/DCC's 'Tokenized JGB and On-chain Repo WG'**
Secured Finance will participate in this WG as a prospective organization in the lending protocol domain.
2. **Consideration of On-chain Repo Transactions utilizing TJGB and Stablecoins**
This WG will organize the legal, accounting, tax, practical, and technical aspects of on-chain repo transactions using Tokenized Japanese Government Bonds and stablecoins.
3. **Contribution to the Study of On-chain Secured Financing Market for Institutional Investors**
As a lending protocol development company, Secured Finance will provide expertise in on-chain lending, collateral management, fair value assessment, clearing and settlement, and transaction lifecycle design.
**Background: Why Tokenized JGBs and On-chain Repo are Gaining Attention**
The government bond repo market is a critical market infrastructure supporting short-term funding and investment, collateral management, and liquidity provision by financial institutions. According to Progmat's announcement, the global repo market collateralized by government bonds had an outstanding balance of approximately $16 trillion at the end of 2024, with the Japanese market accounting for about 10% of the global total.
However, simply tokenizing Japanese government bonds is not easy to generate sufficient real demand, as Japan's existing institutional and settlement infrastructure is already highly developed. By combining tokenized government bonds and stablecoins, there is potential to form new market infrastructure that enables T+0 position building and closing, improved intraday capital efficiency, and integrated collateral management, fair value assessment, clearing, and settlement.
**Secured Finance's Role in this WG**
This WG will concretely organize the methodologies for TJGB and various transaction forms and participating entities for on-chain repo transactions using lending protocols, from legal, accounting, tax, practical, and technical perspectives.
As a prospective participant in the lending protocol domain, Secured Finance will contribute to the discussions in this WG by providing its expertise in the following areas:
* Design of on-chain lending markets
* Design of transaction lifecycles for financing collateralized by tokenized assets
* Protocol design for collateral management, fair value assessment, clearing, and settlement
* Consideration of transaction structures using stablecoins as the cash leg
* Definition of requirements for on-chain market infrastructure intended for institutional use
Source: Progmat, Inc. Press Release dated May 8, 2026, "Regarding the Commencement of Joint Study on 'On-chain Repo Transactions' for 'Tokenized Government Bonds'" p.4
**Significance of Market Design as Envisioned by Secured Finance**
Secured Finance believes that the significance of tokenized government bonds and on-chain repo goes beyond merely replicating existing repo transactions on-chain.
The key is to design a market infrastructure that connects high-quality collateral assets like government bonds, digital cash such as stablecoins, and the practicalities, contracts, and risk management required in existing financial markets, all in real-time.
If the entire transaction lifecycle—from collateral deposit, lending/borrowing, fair value assessment, clearing, repayment, to collateral release—can be handled integrally on-chain, it could lead to a new development in the secured financing market for institutional investors.
Secured Finance will contribute to the realization of on-chain financial infrastructure for institutional investors through the development of lending protocols and related technologies that are consistent with existing financial practices in such market design.