Mizuho Bank, Ltd. and Fujitsu Laboratories Ltd. today announced that they have successfully conducted an operational trial using blockchain for cross-border securities transactions. The firms say the technology makes it practically impossible to tamper with transaction histories as well as shortening the processing time from the three days to same-day settlement.
This revelation further showcases the adoption of blockchain by mainstream Japanese corporations as Mizuho is one of the largest financial institutions in the world and Fujitsu is a technology firm with revenues of $40 billion a year.
The companies plan to create an exceptionally convenient financial system that reduces the risks associated with cross-border securities transactions, such as price fluctuations. They explain that in the past there have been attempts to reduce the number of days required for settlement by eliminating the complicated instruction checking process and sharing data through centralized management. However, issues such as the large cost of system operations management made the initiative impractical.
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Using the blockchain Open Assets Protocol, the companies built a blockchain-forming system in Fujitsu’s cloud environment, recording the information from a confirmation as one linked block. In the system, continuously generated blocks containing trade information were chronologically linked as a blockchain, becoming information that could not be tampered with.
This latest test is evidently part of a larger commitment to the technology by the Japanese conglomerate. Last month, Mizuho Financial Group signed a strategic agreement with IT firm Cognizant (NASDAQ: CTSH) to develop a blockchain solution for secure record-keeping of documents among the its companies around the world.