Japan's Financial Firms Test Distributed Ledger With R3 Corda Trial

A group of Japanese financial institutions has tested a prototype that uses DLT to streamline international transaction agreements.

AccessTimeIconJun 20, 2017 at 10:00 a.m. UTC
Updated Sep 11, 2021 at 1:28 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A group of Japanese financial institutions has successfully tested a prototype that uses distributed ledger technology (DLT) to streamline international transaction agreements.

Announced earlier this month, Nomura Holdings, Daiwa Securities, Mizuho Financial Group and Sumitomo Mitsui Banking Corporation used distributed ledger startup R3's Corda software to streamline an ISDA Master Agreement negotiation.

Published by the International Swaps and Derivatives Association (ISDA), the agreement is intended for over-the-counter (OTC) derivatives transactions internationally. The framework traditionally requires each party involved in the transaction to record and store the emails and documentations that are produced in internal coordination and external negotiation.

According to a statement, using the prototype, each time a transaction is recorded, the terms of the master agreement will apply automatically and do not need to be renegotiated, thus improving transparency and simplifying data management.

Mizuho Bank, Daiwa Securities Group and Nomura Holdings, previously joined a blockchain consortium formed by the Japan Exchange Group (JPX) last November, with a goal of testing a blockchain-based market infrastructure proof-of-concept. The project now has 26 members, including several key regulators such as Japans's central bank and the Financial Service Agency, the country's top markets watchdog.

Developed by R3, a consortium of global financial institutions, Corda is a distributed ledger platform providing APIs and codes for companies to build up blockchain-like applications. It has recently moved to its first public beta phase, marking a notable milestone that follows its launch in November 2016.

Japan roads image via CoinDesk 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.