Daiwa Completes Trial Of Blockchain Based Post-trade Matching Process
Daiwa Securities, investment and securities brokerage firm that stands second only to Nomura in Japan, has officially issued a statement confirming the successful completion of a proof-of-concept (PoC) in post-trade matching process using a blockchain system.
The trial of the blockchain system, named “JPX Proof-of-Concept Testing for Utilization of Blockchain / DLT in Capital Market Infrastructure,” involves 26 firms, including finance related companies, institutional investors and fintech solution providers. The objective of the trail, which was finished in two stages, was to improve the capability of blockchain system in post-trade processing.
The test results indicate that the application of workflow processes and uniform specifications for the blockchain system is anticipated to minimize operational costs and permit easier development of new range of products and facilities.
The test results indicate that putting standardized specifications and workflow processes for the blockchain system into practice minimizes operational costs and permits easier development of new products and services. The firm “believes that the standardization will also generate considerable benefits to the investors who are the ultimate beneficiaries.”
The media release, however, points that applying a standardized system, powered by blockchain, to a broad range of industries necessitate better consideration.
The press release elaborate on future plans as follows:
“We may need to develop a new organization or a consortium which holds 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.”
Recently, Sumitomo Mitsui Banking Corporation, the second largest Japanese bank by assets, carried out a trial of R3’s Marco Polo trade finance platform using an association of organizations which are actively involved in blockchain implementation and advancement. The project’s main objective is to improve efficiency in trade processes.
Furthermore, yesterday, the Bank of Japan released the results of its study on the possible manner in which central bank digital currencies (CBDC) can be implemented under the framework of the prevailing monetary system.