SMBC, Mitsui & Co, IBM Japan, JRI to test blockchain tech for cross-border trade operations
The test aims to verify the effectiveness of blockchain technology for enhancing security and reducing the time required to settle cross-border trade transactions.
A number of Japanese financial and technology majors, including Sumitomo Mitsui Financial Group, Inc. (TYO:8316), Sumitomo Mitsui Banking Corporation (SMBC), the Japan Research Institute (JRI), Mitsui & Co Ltd (TYO:8031), Mitsui OSK Lines Ltd (TYO:9104), Mitsui Sumitomo Insurance Company, and IBM Japan, Ltd. (President: Elly Keinan) have agreed to start a demonstration test this month to verify the applicability of blockchain technology as a way to streamline and upgrade cross-border trade operations.
In an announcement, out today, the companies participating in the test explain that they will input information of real trade transactions using a blockchain-based application, by which a wide variety of documents, including trade agreements and logistics/insurance documents are digitized, recorded and shared among participants. By comparing against current operations, the test aims to verify the effectiveness of blockchain technology for boosting security and cutting the time required to settle cross-border trade transactions, discrepancies among related documents and administrative costs.
Regarding its possible commercialization, the technology will be evaluated for its viability in cross-border trade business operations.
SMFG, SMBC, and JRI plan to use new information technologies proactively, thus responding to an increasingly fast-changing environment. The demonstration test was planned with Silicon Valley Rep. Office. that conducts research on new technologies based on the PoC SMBC announced in February 2017. Through the application of blockchain technology to the safe-keeping of legal information, SMFG is committed to adding value and offering innovative new financial products and services.
The companies participating in the demonstration test have previously reiterated their commitment to new technologies. A fresh example was provided by Mitsui & Co on Monday, December 11th, when the company announced an investment into Preferred Networks, Inc (PFN), a company that specializes in AI technology development and provision, with the focus being on deep learning. Mitsui says it has invested approximately ¥500 million to subscribe to a third-party allotment of new shares by Preferred Networks, Inc.
