Japanese Banks To Test Blockchain Settlement
In the latest blockchain news, a group of nine Japanese banks are poised to trial a blockchain-powered interbank settlement system developed by Fujitsu. The field trial will see the Japanese Payments Clearing Network (Zengin-net) use a dedicated digital currency and a Fujitsu-built blockchain-based platform for interbank settlement.
‘Application Development Vendor’
IT giant Fujitsu announced in a press release that it has been chosen as an “application development vendor” for the field trial that will use a custom digital currency to attempt to achieve low-cost transfer of small-scale transactions using real-time gross settlement. The test is aimed to gauge aspects of the tech such as performance, security, and real-world viability.
The nine banks involved in the effort comprise a consortium called the Japanese Banks’ Payment Clearing Network (or Zengin – net) and include Mizuho Bank and MUFG Bank.
Specifically, Fujitsu will build and provide the new trial platform using blockchain technology and will also utilize a peer-to-peer money transfer platform it developed in 2017 alongside three Japanese banks. That trial encompassed a cloud-based blockchain platform for sending funds between individuals, as well as a smartphone app.
Among its various explorations of blockchain, Fujitsu also partnered in September with the Japanese Bankers Association (JBA) to provide a platform built with Hyperledger Fabric that banks within the group’s ranks could use to test various business use cases for the tech.
It further launched a “ready-to-go” blockchain consultancy service in July that it claimed can deliver a minimum viable product in just five days.
Increasing and Upgrading the Platform
Perhaps following the fall and instability of Ether-backed tokens, the consortium has now decided to go for what seems to be an in-house “digital currency” for their purposes—in the hopes of increasing the functionality of the platform as a blockchain-based transer system for small-scale transactions, and as a trial to confirm the viability of blockchain in this specific context.
The currency will be tied to Japan’s yen, with 1 unit equals to 1 yen. Similarly to Ripple, interbank transfer costs can be kept low as any interbank settlements will be handled through this digital currency and other funds clearance will not be necessary.
The transactions will be made using real-time gross settlement (RTGS, 4) method.
Fujitsu’s role in all of this is to build the trial’s interbank settling platform, the JBA’s Collaborative Blockchain Platform, leveraging a P2P money transfer platform it made in 2017 with 3 banks.