Bank of Tokyo-Mitsubishi UFJ and tech giant Hitachi test blockchain for electronic check management

Rage Review : Mitsubishi Tokyo UFJ Bank and technology giant Hitachi want to use the blockchain system to create a digital platform that can be used to "issue, transfer, and collect electronic checks", and it is expected that the blockchain system version will be issued in large quantities in 2018. Japanese banks and companies have tested the proof of concept mechanism to realize information financial technology services such as check digitization, so that some Hitachi Group companies in Singapore can accept electronic checks and store funds.

Translation: Nicole

Bank of Tokyo-Mitsubishi UFJ and tech giant Hitachi are working together to develop a blockchain proof-of-concept for electronic check management.

According to the two companies, the prototype system aims to create a digital platform for "issuing, transferring and collecting electronic checks." Further experiments are expected to be carried out in the coming days, with a more comprehensive version of the system expected to be released in large quantities in 2018, according to Nikkei.

Hitachi said in a statement:

“By using the blockchain system, MBBC can issue and clear cheques, and some Hitachi group companies in Singapore can accept electronic cheques and store funds. Through the proof-of-concept test, Hitachi and MBBC can verify information from different perspectives, such as technical, security, operational and legal, with the aim of realizing new fintech services, including the digitization of cheques.”

The project was made public a few months after Hitachi announced the creation of a research lab focused on fintech. At the time, the company had just become a member of the Hyperledger Project, an initiative led by the Linux Foundation focused on commercial blockchain applications.

Japan's Mitsubishi Tokyo UFJ Bank has invested a lot of resources in the blockchain industry, and has also invested in Coinbase and participated in a series of experiments based on blockchain technology.

So far, banks have explored use cases including promissory note transactions and digital currencies.