Blockchain technology is a trendy development at a global scale as a resource that can substantially improve several industries and sectors. However, it has become particularly popular in Asia, most specifically in Japan, where lots of enterprises and companies have adopted it and reaped the benefits of doing so.
The latest news involves five banks from Japan that have united forces with the intention of launching a blockchain-based financial services infrastructure. The information was published via a press release last week.
The Financial Institutions in Question
The five financial institutions that have officially adopted blockchain as a tool to improve services are the Bank of Iwate, Bank of Yokohama, Aomori Bank, Akita Bank and Yamanashi Chuo Bank. The name of the ecosystem will be “Fitting Hub,” and the launch of the first service available on the platform is scheduled for April 2019.
The alliance first came up in early 2018. Back then, Japanese news hub Nikkei stated that tests were scheduled for July 2018 and the full deployment of the platform for “within a year,” so the pact beat the deadline for a few months.
The “Fitting” Hub as a Platform that Improves Overall Efficiency
The “Fitting Hub” will improve efficiency in several ways by implementing blockchain in various financial operations and leveraging IBM’s experience in the area for the duration of the development stage.
“The platform is a service provision infrastructure system built on the cloud in order for banks and business operators to jointly provide financial services,” according to the press release. By integrating authentication functions, users are able to use the ecosystem to their advantage.
IBM is one of the planet’s most renowned companies in Information Technologies (IT,) and it has been focusing heavily on developing blockchain-based platforms and ecosystems for enterprise applications. It has a complete suite of blockchain services.
Receive and Manage Data from Multiple Financial Institutions
“With the electronic delivery service that will be launched this time, it is possible to receive and manage form data from multiple financial institutions and companies on one screen,” according to the press release.
“For financial institutions and business operators who provide services, such joint service provision can make the system inexpensive compared to separate systems, as well as greatly reduce postage and mailing costs,” it also read.
This is not the first piece of news related to the Japanese banking sector experimenting with the blockchain technology. Earlier this year, local financial institution Mizuho made public that it was going to launch proprietary crypto platforms, with an associated stablecoin to boot.
Daiwa, Japan’s second biggest securities brokerage, also announced recently that it had completed the testing period of a blockchain post-trade processing platform, as well.
The newly created initiative has its own website, and according to information found in it, the alliance will also incorporate financial authentication and settlement functionality as some of the key features that users will be able to enjoy.
By Andres Chavez