IBM and Bank of Tokyo-Mitsubishi UFJ tests smart contract prototype

FinTech | September 23, 2016 By:

IBM announced it has signed a contract with the Bank of Tokyo-Mitsubishi UFJ (BTMU) to develop smart contracts and automate business transactions based on blockchain modeling.

The project is built on the Hyperledger fabric to use a blockchain for real-life contract management on IBM Cloud. The Hyperledger fabric is an open-source blockchain technology platform intended as a foundation for developing blockchain applications. Its modular architecture allows for plug-and-play components, such as smart contract, consensus and membership services.

The partners have built a prototype of smart contracts on a blockchain that they say improves the efficiency and accountability of service level agreements in multi-party business interactions.

“Blockchain technology has the potential to change not only the financial world, but also other areas of the business world, leading to improved efficiency of the end-to-end business process,” said Motoi Mitsuishi, BTMU’s deputy CEO for Asia and Oceania and general manager of Singapore branch and corporate banking division for Asia and Oceania.

IBM is an American multinational technology and consulting corporation, with corporate headquarters in Armonk, New York. The Bank of Tokyo-Mitsubishi UFJ, Ltd. is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd.