Myanmar tests blockchain for securities trading

Rage Comment : Japanese media reported that Daiwa Securities Group, Japan's second largest securities broker, began testing blockchain securities trading in Myanmar. Five Myanmar companies and the Yangon Stock Exchange participated in the test. Because Myanmar often encounters power outages and communication interruptions, it is difficult to deploy a blockchain system that requires strong computing power support. However, the securities trading model here is very suitable for testing.

Translation: Annie_Xu

A major Japanese securities brokerage is reportedly testing blockchain securities trading in Myanmar.

Daiwa Securities Group’s test was conducted at the Yangon Stock Exchange (YSX) in Myanmar, Nikkei reported. The purpose of the test was to find a mechanism that could efficiently address deficiencies in important trading infrastructure.

The test allegedly began in March with participation from five local businesses and the Yangon Stock Exchange, in which Daiwa holds a stake, local media reported.

The media introduction:

“Blockchain has the potential to connect the Yangon Stock Exchange and local brokers, so this test is to explore how to deploy the system in Myanmar; a country that is often plagued by power outages and communication interruptions.”

This project is not the first blockchain test in Myanmar. Earlier this year, a local microfinance company explored how to use blockchain to simplify its internal systems.

Nikkei said that the notable feature of the test was that the Yangon Stock Exchange "only conducted two trade matches in one day." Therefore, Daiwa believes that there should not be much resistance when the blockchain trading system is actually deployed.

Daiwa is Japan’s second-largest broker after Nomura, which is also developing blockchain applications for exchanges through its corporate research arm.