IT Giant Fujitsu Teams With 9 Banks For Blockchain Settlement Trial in Japan
IT Giant Fujitsu Teams With 9 Banks For Blockchain Settlement Trial
In a press release on Monday, the technology corporation Fujitsu informed that a group of nine Japanese banks approached it for a field trial involving blockchain technology for faster and secure settlements of banking transactions.
The press release informs that the test’s goal is:
“Conduct a functionality trial of a digital currency as a new system for inter-bank settlement using blockchain technology, as well as to test the practical aspects surrounding the system (such as performance and security) if blockchain technology were adopted, confirming the technology's viability.”
Fujitsu has said that it has been chosen by the team of 9 banks as their “Application Development Vendor” The consortium will be testing on the effectiveness and efficiency of a blockchain monetary settlement and clearing system involving a custom made digital currency. The exercise will be done to see if low cost transfer of micro transactions is possible in near real time or not. Along with this, its viability and reliability will also be tested.
The trial will cover three parts of the settlement process:
- Issuance, where the platform will release digital currency to a requesting bank.
- Transfer, when a settlement is to be made with another bank, the currency will be transferred to the other bank.
- Collection, when a request is made by a bank to the platform, it will collect the digital currency from the bank.
The consortium of 9 banks that have approached Fujitsu are working on what is called the Japanese Banks’ Payment Clearing Network, or Zengin Net, locally. The consortium includes big banks such as Mizuho Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Resona Bank, Joyo Bank, Nishi Nippoin Bank, Bank of Fukuoka, Keiyo the MUFG Bank.
Fujitsu will be helping the bank trials through its own blockchain peer to peer money transfer platform it developed last year. The platform was also developed in collaboration with three other Japanese banks.
Not The Only One
These two banking decentralized platform services are not the only ventures of the technology giant into the blockchain sector. Last month, it partnered with another banking collective, the Japanese Banking Association (JBA), to give them a platform that was built on hyperledger technology. This allowed the JBA to test different financial and business transactions within the group.
In July, Fujitsu also had unveiled a blockchain consultancy service that it claimed was “ready to go” and could deliver a minimum viable product within five days.