Blockchain technology once again helps cross-border payments

Japanese banking group Mizuho recently completed a blockchain trial for cross-border securities settlement.

The trial used the Open Assets protocol, which allows for the regular deployment of colored coins, adding a new layer of functionality to the Bitcoin blockchain. Open Assets allows Bitcoin to be uniquely tokenized, which can then be used to represent other assets on the blockchain.

According to a March 8 news report, Fujitsu Laboratories, the research and development arm of Japanese IT giant Fujitsu, also participated in the trial.

The parties involved said the trial, which took place from December last year to February this year, showed that blockchain technology could shorten the time of post-trade processes.

Mizuho said:

“The blockchain system used in this trial continuously generates blocks of transaction information, which are then linked to the blockchain in chronological order to become incorruptible information. In addition, because this information can be shared among multiple companies, the partners believe that this trial can shorten the time required for post-trade processing.”

Near instant settlement

Mizuho said the goal of the trial is to find ways to facilitate the post-trade process in a way that would both shorten the time required and reduce the likelihood that data could be tampered with.

The bank said:

“The goal of the trial is to build a system that can conduct low-cost, low-risk cross-border securities trading by using blockchain technology, which can share matching and untamperable transaction information data for post-trade processing almost instantly, and does not require the establishment of a large-scale settlement system from scratch.

Mizuho and Fujitsu aren’t the only companies in the financial world looking to blockchain as a potential solution for post-trade settlement.

Last year, the London Stock Exchange, Societe Generale and UBS explored blockchain technology for the same purpose.

There is more work to be done

The companies said they plan to use information gathered during this trial to prepare for future efforts.

For Mizuho, ​​the announcement adds to its growing list of collaborators in blockchain research efforts, after the company revealed last month that it was working with IT consultancy Cognizant to develop an internal record-keeping system using blockchain technology.

Mizuho has been interested in blockchain since its past collaboration with the now defunct bitcoin exchange Mt Gox. Mizuho is also involved in a project to develop a syndicated loan system using blockchain technology. In this project, Mizuho is also working with Dentsu International Information Services, Microsoft Japan and blockchain startup Currency Port.

Mizuho is also part of a blockchain consortium led by startup R3 and involving more than 40 banks.

Original article: http://www.coindesk.com/mizuho-post-trade-blockchain-trial/
By Stan Higgins
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/mizuho-post-trade-blockchain-trial)