Three Bigs Building Trade Financing Solutionbr>
The group’s plan is to streamline trading operations and improve supply chain efficiency. The official release stated that digitizing trade information on the blockchain can help change the way information is shared, infusing greater trust into transactions. This would make it easier for parties involved in the supply chain, including exporters, importers, shippers, insurance companies, port operators and port authorities, to share critical shipment data in near real-time.
Mizuho Financial Group is working with IBM Japan to conduct its first live trade financing transactions based on Linux’s Hyperledger Fabric. The system will entail the exchange of digitized letters of credit for actual trade transactions between Japan and overseas clients, with all documents created, stored and shared on a permissioned ledger between importers, exporters and their banks.
“We are pleased to be the market leader in Japan in powering our processes and workflows with distributed ledger technology and continue to work aggressively towards expanding our portfolio of its implementations across the group,” said Mizuho Financial Group Managing Executive officer and chief digital innovation officer Daisuke Yamada. “The global expertise in digital technology of IBM complements our vision and has opened further avenues for us to tap the potential of distributed ledger in transforming our processes and workflows for better enterprise agility, transparency and regulatory reporting.”
“The Mizuho Financial Group and Mizuho Bank’s project marks an important step in using blockchain technology for actual operations in trade finance,” said IBM Japan Industry Sales managing director Masao Sanbe . “In working with global trade networks to digitize documentation and processes, IBM recognizes the potential of blockchain to help streamline financial trade services.”