Japan’s Second-Largest Securities Brokerage Completes DLT Pilot

Daiwa Securities Group has completed a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based proof-of-concept (PoC) to implement the decade-old technology in the trade matching of post-trade processing.

According to the February 19 press release shared with CoinTelegraph, Japan’s second largest securities broker partnered with 26 companies including financial institutions, system providers, and institutional investors for the pilot project called “JPX Proof-of-Concept Testing for Utilization of Blockchain / DLT in Capital Market Infrastructure.”

The project was divided into two phases, and the brokerage company completed both of them.

The publically available report of the PoC noted that its main goal is “to improve the efficiency by migrating a part of the functions of the existing systems.”

“DLT can be a good solution to achieve the industry-wide optimization of trade matching processes,” the Japanese brokage noted.

The results of the pilot show that the integration of blockchain will reduce the operational cost of the workflow process allowing easier development of new products and services.

The company also believes that “the standardization will also generate considerable benefits to the investors who are the ultimate beneficiaries.”

“We may need to develop a new organization or a consortium which holds [the] responsibility of the system development and administration, budget management and fund development. We are going to discuss more about the framework of collaboration with the market participants and to conduct feasibility study in order to put this concept [...] into action,” Daiwa stated in the press release.

Blockchain is Not Flawless

Mentioning the constraints of blockchain, the firm noted that the technology needs advanced information security and timely updates of its functions to follow the changes in the business environment and user needs.

“We will continue to work for [the] realization of this plan through further coordination with all the related companies,” the Japanese firm concluded.

More and More Companies Testing Blockchain

The Japanese securities giant is not the only mainstream financial company in the island nation to move towards blockchain. Rakuten, an e-commerce and securities giant in the country, has recently added cryptocurrency payments option in its mobile app.

Moreover, Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation, on Tuesday announced the completion of a PoC with R3’s Marco Polo to test blockchain technology for trade finance.