JPX group companies are to conduct proof of concept testing based on the possibility of applying blockchain or distributed ledger technology to capital market infrastructure.
The Tokyo Stock Exchange (TSE), the Osaka Exchange, (OSE) and the Japan Securities Clearing Corporation (JSCC), known as the JPX group companies, are to form a consortium of Japanese financial institutions to continue to conduct proof of concept (PoC) testing.
In cooperation with IBM Japan PoC testing by the consortium will commence in the spring of 2017.
JPX group companies will now cooperate with a wide range of stakeholders, such as banks, financial services firms and Distributed Ledger Technology (DLT) engineers, to make steady progress in verifying the technology.
Further Research Demanded
After tests last year JPX decided that while DLT undoubtedly has the potential to transform capital market infrastructures, more intense research and development is still needed before going live.
DLT applications for capital market infrastructure developed by TSE, participating financial institutions, IT vendors, and DLT startups will be deployed and tested in this environment. Verifying various applications will help to identify and address technical and service issues.
DLT is gaining attention worldwide as one of the most promising aspects of fintech that could be applied to constructing shared infrastructure to provide high availability and reliability with significant cost savings..
