Fujitsu in New, Blockchain-Powered Inter-Bank Settlement System Field Trial
Supporting fintech field trial by Zengin - net as an application development vendor
TOKYO, Oct 29, 2018 - (JCN Newswire) - Fujitsu has been selected as an application development vendor for a field trial exploring the potential use of the Japanese Bankers Association's (JBA) Collaborative Blockchain Platform(1) as a funds transfer settlement system based on blockchain technology. The trial will be conducted by the Japanese Banks' Payment Clearing Network, otherwise known as "Zengin - net."
|Figure: Diagram of the field trial|
This field trial, based on the participation of the board of directors(2), will use a dedicated "digital currency" for interbank settlements(3) to evaluate the functionality of the system as an economical new interbank funds transfer settlement system for small-scale transactions using a real time gross settlement (RTGS, 4) method. The participants will also use the trial to confirm the viability of blockchain technology in this context.
Fujitsu will play an instrumental role in this field trial by building and providing the trial's ICT platform, namely, the new interbank settlement platform, using blockchain technology. It will additionally leverage the P2P money transfer platform(5) it developed in fiscal 2017 with three major banks to generate the money transfers to other banks that will trigger interbank funds transfer settlement.
By participating in this project, Fujitsu aims to establish a new platform that utilizes cutting-edge technology to help realize a cashless society.
Field Trial Details
1. Trial Structure
Operating Entity: Japanese Banks" Payment Clearing Network
Participating Banks: Zengin - net's board of directors; nine banks:
Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Resona Bank, The Joyo Bank, THE BANK OF FUKUOKA, THE NISHI-NIPPON CITY BANK, Sumitomo Mitsui Trust Bank, The Keiyo Bank
Application Development Vendor: Fujitsu Limited
2. Trial Goal
Conduct a functionality trial of a digital currency as a new system for inter-bank settlement(6) using blockchain technology, as well as to test the practical aspects surrounding the system (such as performance and security) if blockchain technology were adopted, confirming the technology's viability.
3. Trial Scope
The trial will test a system for inter-bank settlement and value transfer using a digital currency (the issuance, transfer, and collection of the digital currency) in an Inter-bank Settlement platform. (Figure)
Figure: Diagram of the field trial
4. Trial Details
The issuance, transfer, and collection of the digital currency used for inter-bank settlements will be evaluated in the following ways:
Issuance: After receiving a request from a bank, Zengin - net will issue digital currency to the bank on the new Inter-bank Settlement platform.
Transfer: When the necessity of interbank funds transfer settlement arises (in this case, through the use of the P2P money transfer platform), settlement (interbank payment) will be conducted by transferring digital currency from the originator bank to the receiving bank.
Collection: After receiving a request from a bank, Zengin - net will collect the digital currency issued to the bank on the new Inter-bank Settlement platform.
5. Trial Environment
The trial will use a testing environment provided by Fujitsu on the JBA's Collaborative Blockchain Platform.
(1) Collaborative Blockchain Platform
A collaborative, cooperative field trial environment, established by JBA with the goal of generating and sharing knowledge relating to blockchain and distributed ledger technology.
(2) Board of directors
Please see https://www.zengin-net.jp/company/pdf/directors.pdf (Japanese) for more information on the board of directors.
(3) Dedicated digital currency for inter-bank settlement
This currency (fixed at 1 unit = 1 yen), will be issued to participating banks by Zengin - net, a funds clearing institution. Because RTGS-style interbank settlements will be handled through the use of this digital currency, other funds clearance will not be necessary.
(4) Real time gross settlement (RTGS)
A system in which individual payment instructions are settled in gross, one by one. Leads to reduced payment risk because unsettled payment balances do not build up.
(5) P2P money transfer platform
Fujitsu to Conduct Blockchain Field Trial of Money Transfer Service with Three Major Japanese Banks (press release, October 10, 2017) P2P is a contraction of "peer to peer."
The clearing of claims and debts between banks, generated by money transfer transactions to other banks, via interbank payments.
Public and Investor Relations
Source: Fujitsu Ltd
Sectors: Cloud & Enterprise, Blockchain, Technology, Banking & Insurance
Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.
More Latest Release >>
Honda Signs Joint Development Agreement with SES, an EV Battery Research and Development Company
Jan 19, 2022 13:01 JST
Eisai's Anti-amyloid Beta Protofibril Antibody Lecanemab Selected as the Background Therapy for the Tau Nexgen Study
Jan 19, 2022 10:06 JST
Toyota Announces Production Plans in February 2022, as of January 18
Jan 18, 2022 17:06 JST
MHI: Successful Demonstration Test of World's First Fully Autonomous Ship Navigation Systems on Coastal Ferry in Northern Kyushu
Jan 18, 2022 14:18 JST
Honda to Begin Sales of EU32i, All-New Portable Generator Equipped with Sine Wave Inverter, in Europe in March 2022
Jan 18, 2022 10:29 JST
Toyota GR YARIS Rally1 Ready for the WRC Hybrid Revolution
Jan 17, 2022 18:35 JST
DENSO and Aisan Reach Agreement on Transfer of Fuel Pump Module Business
Jan 17, 2022 15:34 JST
Eisai to Present Abstracts on Lenvatinib at 2022 ASCO Gastrointestinal Cancers Symposium
Jan 17, 2022 11:44 JST
Dakar Victory for TOYOTA GAZOO Racing as Al-attiyah/Baumel Take the Win
Jan 17, 2022 10:55 JST
Airbus, NTT, DOCOMO and SKY Perfect JSAT Jointly Studying Connectivity Services from High-Altitude Platform Stations (HAPS)
Jan 17, 2022 10:30 JST
DOCOMO Develops Solution to Create High-frequency Mobile Cells By Placing Small Plastic Antenna on Dielectric Waveguide Cable
Jan 17, 2022 10:16 JST
Hitachi Rail Partners Exclusively with Intermodal Telematics to Offer a Digital Solution to Improve Rail Freight Efficiency and Safety
Jan 14, 2022 18:04 JST
DENSO Develops Global Safety Package 3 to Improve Vehicle Sensing
Jan 14, 2022 13:41 JST
TOYOTA GAZOO Racing Unveils GR GT3 Concept and GRMN Yaris as Embodiments of Making Ever-better Motorsports-bred Cars
Jan 14, 2022 12:06 JST
Lexus to Debut the NX PHEV OFFROAD Concept and Hydrogen Engine Equipped ROV Concept at the Tokyo Auto Salon
Jan 14, 2022 10:56 JST
TOYOTA GAZOO Racing Premieres GRMN Yaris in Japan
Jan 14, 2022 10:26 JST
Toyota Launches New Noah and Voxy Minivans in Japan
Jan 13, 2022 14:21 JST
Eisai to Launch Digital Too "Cogmate" in Taiwan and Hong Kong for Self-Assessment of Brain Performance (Brain Health)
Jan 13, 2022 13:26 JST
Soft Space Enters into Strategic Partnership with JCB
Jan 13, 2022 12:00 JST
Lexus Brings a Custom Tuned LX "OFFROAD" Model to the Tokyo Auto Salon 2022
Jan 12, 2022 15:32 JST