Japan Exchange Group JPX forms alliance to test blockchain market infrastructure, with Tokyo Exchange and Osaka Exchange participating

Japan Exchange Group (JPX) has formed a consortium of companies and exchanges to test a blockchain market infrastructure proof-of-concept.

JPX announced today that the Tokyo Stock Exchange, Osaka Exchange and Japan Securities Clearing Group will jointly participate in testing this proof-of-concept prototype. In February this year, JPX announced that they were working with IBM Japan to test blockchain technology, using IBM's Fabric blockchain platform as the basis for the test experiment.

The just-announced project builds on their previous partnership. The Tokyo Stock Exchange will work with IBM Japan to develop what JPX calls a 'test environment', after which they and other companies affiliated with JPX will begin testing. JPX says the trial is set to begin next spring.

In a statement, JPX said it will seek to attract other stakeholders to join the alliance — including companies that trade on Japanese exchanges — with an eye toward expanding membership in Japan. JPX said it will begin accepting new members in 2017.

JPX said:

“We seek participation from a broad range of Japanese financial institutions to gain extensive industry expertise. Members of the consortium will conduct PoC tests and discuss the capabilities of distributed ledger technology for capital markets infrastructure, both from a technical and operational perspective.”

According to JPX, the ecosystem they want to expand will include securities firms, exchanges and technology providers who will play a role in the development of the system. The group said today that the applications they envision will be created by participating exchanges or other institutions on top of IBM's Fabric platform.

So far, many large companies have announced the adoption of IBM's blockchain technology, such as:

1. Indian multinational giant Mahindra announced yesterday that it will work with IBM to jointly develop blockchain solutions to reshape India's supply chain finance.

2. International retail giant Walmart announced that it will use IBM's blockchain technology to develop its own food safety network.

3. Kasikornbank, Thailand’s third-largest bank, is working with IBM to develop blockchain technology for authenticating official documents.

4. IBM and Singapore startup FreshTurf are collaborating on a blockchain-based network of storage lockers.

5. IBM and Japanese securities firm SBI test blockchain bond trading platform