BTMU, Hitachi test new check processing process in Singapore

Rage Comment : The Financial Services Agency of Japan once pointed out that Asia should be a pioneer in the field of blockchain technology, but the reality is that the development of blockchain technology in Asia is still very slow. Financial service centers such as Singapore have just begun to open up the development environment of blockchain technology. Therefore, Japan's blockchain development process is relatively fast in Asia. BTMU's recent activities are even more frequent. It has reached a cooperation with the Bitcoin exchange Coinbase to plan a 24-hour transfer service based on blockchain. This time, it has cooperated with Hitachi Group to develop an electronic check payment processing system based on blockchain technology in Singapore, making full use of Asia's advantages.

Translation: Annie_Xu

Bank of Tokyo-Mitsubishi UFJ (BTMU) and Hitachi are developing an electronic check payment processing system based on blockchain technology.

The project, based in Singapore, is the first overseas investment by a major Japanese bank or in the emerging technology sector, a sector in which Japanese banks are relatively late to the game.

BTMU, which is part of Mitsubishi UFJ Financial Group (MUFG), has developed a prototype with Hitachi and will be used for full-scale trials this month. The plan is to complete the system as early as 2018.

The two agencies expect the system to be widely used by local businesses and banks, and its application areas may go beyond check payments.

The success of this project will mean that Hitachi will have a new order development system. BTMU's business advantages in Asia can be realized through the scale effect of Internet finance.

Blockchain technology offers a secure and inexpensive way to process payments and other transactions. Traditionally, it takes two days to process a handwritten check. The new system could increase speed and reduce the risk of fraud.

Financial industry observers say Japanese banks lag behind Western countries in technological advancement, but BTMU is not sitting still. It recently began developing a private blockchain-based payment system called MUFG Token.

In addition, in the context of Asia's emerging markets neglecting the development of Internet finance, Japan's activities in this field are still quite active. 60% of payments in Singapore are made by check.

Asia offers growth potential and geographic advantages to Japanese banks and technology companies, and many Japanese institutions are already taking advantage of this. Hitachi already has deep ties with Singapore's financial industry. Banks such as BTMU see Singapore as a cornerstone for building Asia's financial infrastructure.

Singapore is committed to becoming a more advanced financial services hub and has opened the door to innovation. It provides a "regulatory sandbox" for Internet finance experiments, where developers can test new solutions within a relaxed regulatory framework. BTMU and Hitachi will use this initiative as an opportunity to test the developed systems.