By Jamie Redman,
The Bank of Tokyo-Mitsubishi UFJ and Hitachi are working on a blockchain-based prototype that processes and verifies the integrity of check payments.
Hitachi & Mitsubishi Test Blockchain-Based Checking
Blockchain technology has become quite popular in Japan to financial institutions that reside in the region. According to Nikkei, this particular project will be taking place in Singapore.
The two companies believe that the check processing prototype could be used by banks and businesses within the region. Hitachi is hoping to create a more efficient network of development orders while Mitsubishi UFJ is looking to benefit by bringing fintech solutions to Asia. The two companies will begin trials on August 22 and hope to have a fully operational system by 2018.
Traditionally handwritten checks can take roughly 2-4 days to clear but with the distributed ledger protocol processing will be instant. The partners also envision other real-world applications and use-cases in the future.
FinTech Hub, Singapore
The companies believe the Asian region is ripe for a better check validation system. In Singapore, nearly 60% of financial transactions are done by checks. Mitsubishi sees the country as a great place to broaden its Asian financial infrastructure while Hitachi already has roots in the region.
Mitsubishi UFJ has been all about getting involved with distributed ledger technology by working on another prototype called MUFG coin. Back in March, Hitachi Initiated its fintech and blockchain Lab at its Silicon Valley headquarters. The company had stated at the time that the firm would “accelerate research and development of blockchain technology,” with its Californian fintech lab.
The two companies are keen on Singapore as it has been a hotspot for innovative projects and startups.