Canton Network, built by Digital Asset, is expanding its tokenization efforts beyond US government debt to include European and Asian government bonds. The network launched tokenized US Treasuries for repo transactions in August 2026 and is now exploring how blockchain-based bonds can function across multiple markets.
The next targets are European government bonds, including UK Gilts and EuroGovs, as well as Japanese Government Bonds. Pilot activity is already underway: cross-border repo transactions using tokenized UK Gilts were carried out on LSEG's platform in January 2026, and proofs of concept for JGBs as digital collateral began in April 2026 with participation from MUFG, Mizuho, and Nomura.
A parallel effort involves deposit tokens—blockchain representations of traditional commercial bank deposits. These remain bank money issued under existing legal frameworks but travel on the same network as the assets they fund. The approach enables atomic settlement, where bond and cash exchange simultaneously on a single ledger, or neither moves at all.
This infrastructure supports around-the-clock repo activity, a significant change from traditional bond markets that operate during business hours. Banks holding collateral across different custodians and time zones have historically struggled to move assets quickly when needed.
The Depository Trust & Clearing Corporation plans to launch a tokenization service featuring select US Treasuries on Canton, with a rollout expected in the fourth quarter of 2026 targeting 25 initial securities. Canton-connected platforms have historically handled more than 50% of global digital bond issuances.
Key developments to monitor include whether the DTCC Treasury service launches on schedule, whether Japanese bank trials progress to live repo activity, and which banks begin issuing deposit tokens on Canton—a factor critical to determining whether tokenized bonds scale across markets.
