22 September 2017
Visit http://response.ncr.com

Mizuho to go live with DLT-based trade finance application

26 April 2017  |  15155 views  |  1 Numbers

Mizuho Bank is preparing to conduct its first live trade financing transactions over a distributed ledger developed in association with IBM.

The project will entail the exchange of digitised letters of credit for actual trade transactions between Japan and overseas clients, with all documents created, stored and shared on a permissioned ledger between importers, exporters and their banks. The system will also enable all parties to view the latest shipment status data, which can result in reduced trade transaction and processing costs.

The progreamme is the latest blockchain experiment conducted by the Japanese financial group, which is running a multitude of tests of the technology across its operations, from financial record-keeping to client document exchange.

Daisuke Yamada, managing executive officer and chief digital innovation officer at Mizuho, describes the bank as a market leader in Japan in applying the technology to its processes and workflows.

"We continue to work aggressively towards expanding our portfolio of its implementations across the group," he says.

This first phase of the trade finance project will lead to Mizuho conducting actual trade transactions based on Hyperledger Fabric in June 2017.

Comments: (1)

Enrico Camerinelli
Enrico Camerinelli - Aite Group - Boston | 30 April, 2017, 10:18

International banks- especially in the Far East- are traditionally strong in trade finance and want to keep a competitive lead. Distributed Ledger Technology (DLT) presents indeed a way to create efficiencies and streamline processes. It is important, however, to understand how well prepared is the bank to move from document exchange (e.g., letters of credit- LCs) on the DLT to automating business processes like preparation of LCs and subsequent payment. This is something that corporate users will most likely demand after initial adoption.

LCs’ role is to reduce counterparty credit risk, especially between parties that have low level of reciprocal trust. However DLT is there exactly to ensure trust, so the question to ask is whether LCs will still be needed in a DLT environment.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Mizuho carries out blockchain document sharing and digital currency trial

Mizuho carries out blockchain document sharing and digital currency trial

24 February 2017  |  13972 views  |  0 comments | 7 tweets | 4 linkedin
Japanese banks invest in local bitcoin exchange

Japanese banks invest in local bitcoin exchange

14 February 2017  |  7745 views  |  0 comments | 5 tweets | 11 linkedin
Mizuho prepares for IoT banking

Mizuho prepares for IoT banking

07 February 2017  |  10430 views  |  0 comments | 20 tweets | 20 linkedin
Mizuho opens Tokyo innovation lab

Mizuho opens Tokyo innovation lab

24 October 2016  |  8266 views  |  0 comments | 9 tweets | 5 linkedin
US judge paves way for lawsuit against Mizuho over Mt Gox losses

US judge paves way for lawsuit against Mizuho over Mt Gox losses

15 March 2016  |  4900 views  |  0 comments | 4 tweets
Mizuho and Fujitsu complete blockchain trial

Mizuho and Fujitsu complete blockchain trial

08 March 2016  |  9630 views  |  0 comments | 11 tweets | 9 linkedin
Mizuho Bank taps IBM's Watson to give robot branch workers an IQ boost

Mizuho Bank taps IBM's Watson to give robot branch workers an IQ boost

04 March 2016  |  12103 views  |  1 comments | 24 tweets | 25 linkedin
Mizuho turns to blockchain for financial record keeping

Mizuho turns to blockchain for financial record keeping

17 February 2016  |  6990 views  |  0 comments | 8 tweets | 13 linkedin
Mizuho faces legal action over MT Gox collapse

Mizuho faces legal action over MT Gox collapse

17 March 2014  |  4552 views  |  0 comments | 4 tweets | 8 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.temenos.comdownload the paper now

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
12746 views comments | 26 tweets | 42 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
11040 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9577 views comments | 6 tweets | 3 linkedin
Apple P2P payments service nears launchApple P2P payments service nears launch
8278 views comments | 18 tweets | 27 linkedin
AXA launches blockchain to cover late flight compensationAXA launches blockchain to cover late flig...
8063 views comments | 13 tweets | 27 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job