September 12, 2017 2:13 am JST

SBI unit to test cross-border blockchain funds transfers

South Korean banks join experiments involving Japanese consortium

TOKYO -- SBI Ripple Asia looks to begin testing a funds-transfer system using blockchain technology between Japanese and South Korean banks by the end of fiscal 2017, applying experience gained from experiments in Japan.

The SBI Holdings unit will work with DAYLI Intelligence, a provider of blockchain technology, on the South Korean side. The payments experiment using virtual currency will run on blockchain, which involves having participants confirm a transaction by comparing their own copies of the register logging all transactions within a system. This decentralized record-keeping scheme allows money to be sent at any time and entails far lower costs than a conventional clearing arrangement.

SBI Ripple Asia leads a consortium of Japanese banks that are experimenting with blockchain-based transfers, including those using the virtual currency XRP, often referred to as Ripple. That group counts more than 60 participants, including Japan's three megabanks -- Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group -- as well as regional banks across the country.

South Korea's financial institutions also are taking a greater interest in blockchain as an interbank funds settlement method. Cross-border partnerships such as that with SBI Ripple Asia aim to popularize blockchain-based payments in that country by blending Japanese expertise with new technologies.

SBI Ripple Asia and its parent will begin a program in October to train engineers in the intricacies of blockchain and virtual currencies, aiming to promote research and experimentation in those areas. Around 20 companies, including Nomura Research Institute, Toppan Printing and NEC, are first on the list to take part in the program.

(Nikkei)

SBI Holdings, Inc.

Japan

Market(Ticker): TKS(8473)
Sector:
Industry:
Finance
Financial Conglomerates
Market cap(USD): 3,282.23M
Shares: 224.56M

Mitsubishi UFJ Financial Group, Inc.

Japan

Market(Ticker): TKS(8306)
Sector:
Industry:
Finance
Major Banks
Market cap(USD): 89,132.53M
Shares: 14,027.69M

Sumitomo Mitsui Financial Group, Inc.

Japan

Market(Ticker): TKS(8316)
Sector:
Industry:
Finance
Major Banks
Market cap(USD): 54,244.78M
Shares: 1,414.44M

Mizuho Financial Group, Inc.

Japan

Market(Ticker): TKS(8411)
Sector:
Industry:
Finance
Major Banks
Market cap(USD): 44,682.49M
Shares: 25,389.64M

Nomura Research Institute, Ltd.

Japan

Market(Ticker): TKS(4307)
Sector:
Industry:
Technology Services
Information Technology Services
Market cap(USD): 9,676.32M
Shares: 264M

Toppan Printing Co., Ltd.

Japan

Market(Ticker): TKS(7911)
Sector:
Industry:
Commercial Services
Commercial Printing/Forms
Market cap(USD): 6,955.48M
Shares: 699.41M

NEC Corp.

Japan

Market(Ticker): TKS(6701)
Sector:
Industry:
Electronic Technology
Electronic Equipment/Instruments
Market cap(USD): 6,973.09M
Shares: 2,604.73M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

Resubscribe now to continue reading.
BEST OFFER:
Only US$ 9.99 per month for a full-year subscription

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.