Showcasing the rapid adoption of blockchain technology in Japan, two of the largest and most important Japanese financial institutions have separately revealed today their commitment to the technology.
Operator of Asia’s largest trading bourse, and the world’s third largest stock venue, Japan Exchange Group (JPX) announced that it will start conducting proof of concept on distributed ledger technology with the help of IBM Japan. The two firms will conduct a test to “evaluate the limits and possibilities of blockchain technology in markets that have low transaction data volume using the framework provided by the Hyperledger Project.”
Unrelated to the JPX announcement, one of the largest financial institutions in the world also showed its commitment to the technology today. 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 Japanese conglomerate’s companies around the world.
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As part of the agreement, Cognizant will develop a blockchain solution for Mizuho’s customers, counterparties, and group companies to exchange and sign sensitive documents in a secure and transparent manner, which according to the plan will result in faster, more efficient processing and multi-party verification. The firms say that this engagement will initially focus on New York and Tokyo, where most of Mizuho group’s companies are based.
“We are pleased to be among the early adopters of blockchain technology in Japan to make our processes and workflows faster and more efficient,” said Toshitsugu Okabe, Deputy President and Executive Officer of Mizuho Financial Group. “The global domain and technology expertise of Cognizant will complement our vision and reinforce our reputation as the most trusted financial services group. We are impressed with Cognizant’s blockchain-based solutions for financial services organizations, and their sharp focus on this rapidly evolving technology.”
“Blockchain technology is a game-changer for the financial services industry,” said Prasad Chintamaneni, President, Banking and Financial Services, Cognizant. “We continue to invest in our blockchain capabilities and are going beyond cryptocurrencies into newer areas such as smart contracts and P2P transactions. This agreement will pave the way for increased adoption of Blockchain technology at Mizuho Financial Group to minimize counterparty risks, speed up settlements, improve contractual performance, and enhance regulatory reporting.”