Japanese Banks To Trial Blockchain-Powered Interbank Settlement Systembr>
Japanese IT firm Fujitsu has been selected by the Japanese Bankers Association (JBA) as an application development vendor for a field trial exploring the potential use of JBA’s Collaborative Blockchain Platform.
The Collaborative Blockchain Platform was established by JBA with the goal of generating and sharing knowledge relating to blockchain and distributed ledger technology. The JBA provides the platform to its member banks and other institutions as a testbed environment for applications employing blockchain, such as for settlement and funds transfer services, and identity and time-of-transaction authentication.
The field trial, which will be conducted by the Japanese Banks’ Payment Clearing Network (Zengin-net), will use a dedicated “digital currency” for interbank settlements to evaluate the functionality of the system as an economical new interbank funds transfer settlement system for small-scale transactions using a real time gross settlement (RTGS) method. The participants – Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Resona Bank, The Joyo Bank, The Bank of Fukuoka, The Nishi-Nippon City Bank, Sumitomo Mitsui Trust Bank, and The Keiyo Bank – will also use the trial to confirm the viability of blockchain technology.
Fujitsu will build and provide the trial’s ICT platform, the new Interbank settlement platform, using blockchain technology. Fujitsu will also leverage the peer to peer (P2P) money transfer platform it developed last year with three major banks to generate the money transfers to other banks that will trigger interbank funds transfer settlement.
During the trial, the digital currency used for inter-bank settlements will be evaluated by Zengin. After receiving a request from a bank, Zengin will issue digital currency to the bank on the new Inter-bank Settlement platform. When the necessity of interbank funds transfer settlement arises, settlement will be conducted by transferring digital currency from the originator bank to the receiving bank. After receiving a request from a bank, Zengin will collect the digital currency issued to the bank on the new inter-bank settlement platform.
Fujitsu said that the ultimate goal of the project to establish a new platform that utilizes cutting-edge technology to help realize a cashless society.