Mizuho Tests Digital Currency-Powered Settlement

Built in partnership with IBM Mizuho Financial Group announced today that it has tested the use of a token-based blockchain settlement system.

AccessTimeIconJun 23, 2016 at 12:43 p.m. UTC
Updated Sep 11, 2021 at 12:20 p.m. UTC

Mizuho Financial Group announced today that it has tested the use of a digital currency-based, blockchain settlement system.

The project, built in partnership with IBM, is notable given the emphasis financial incumbents have placed on using distributed ledger solutions for settlement in which information, not any finite digital asset, is shared among participants.

For example, the news follows reports that blockchain post-trade provider Cryex is struggling to gain regulatory approval for a similar, cryptocurrency-based settlement service.

However, the company's release did not discuss regulatory challenges with the project, instead focusing on illuminating its design and intent.

Mizuho’s test was created through the use of IBM’s blockchain services platform, announced in February.

IBM's summary of the news reads:

Today Mizuho Financial Group announced it is working with IBM to use blockchain technology for payment settlements using the bank's own virtual currency in a project that will explore how payments can be instantaneously swapped. This is one of several ways the bank is exploring the use of blockchain and creating a platform across the bank using the Linux Foundation Hyperledger code.

By putting blockchain through a number of rigorous tests, the bank is gaining confidence in its use and sharing their learning with the financial community. With the virtual currency pilot, the bank expects to better understand how the settlement process can be simplified in a private, secure and permissioned blockchain network.

Using its own virtual currency that trades 1:1 with the Yen in a secure environment could potentially provide better tracking and control of the exchange of funds, and eliminate some of the expenses associated with the exchange of paper-based currency.


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.