Japanese Bankers Assn. Seeks Common Blockchain

The Japanese Bankers Association (JBA) plans to build a common blockchain platform for the country’s banks to begin trials of some core banking processes.

The JBA, an association that represents and works on behalf of 252 member institutions in Japan, is aiming to provide a common platform for members of all sizes to run experiments with the technology.

The association said that the system will enable them to use distributed ledger technology (DLT) in areas including settlement and remittance service, identity verification, and know-your-customer (KYC), financial infrastructure, among other items. It will facilitate blockchain-based trials and demonstration experiments to develop new financial services and to share knowledge of DLT across the banking industry.

The association will also see regulatory counsel and support from the Financial Services Agency, the country’s financial regulator and the Bank of Japan, the nation’s central bank.

The first trials of blockchain-based systems by member institutions are expected to start this fall. The JBA will open contract discussions with tech companies for the trials.