Categories: CryptoNews

Japanese Bank Partners with Mijin on Applying Blockchains in Bank Accounting Systems

Japan-based SBI Sumishin Net Bank has revealed a 3-month long experiment in collaboration with Dragonfly Fintech and Japanese permissioned blockchain solutions provider Mijin, which demonstrated the application of the technology in the accounting systems of financial institutions.

According to the translated press release on Mijin’s blog, the experiment – which was hosted on blockchain-based  systems provided by Tech Bureau-owned Mijin – simulated an operating environment with 2.5 million bank customers capable of doing 90,000 transactions per hour.

The release states:

“6 nodes was set up in AWS, fault tolerance and availability were tested, and it was confirmed that everything went smoothly.”

While many financial institution like JPMorgan and Goldman Sachs have focused on applying blockchains in securities clearing and settlement, this is the first publicly known application of the technology in the consumer banking space.

The experiments carried out so far by other banks and financial companies have only demonstrated the potential of blockchains in controlled environments that have very little to do with real-world transaction volumes. However, SBI’s trial, is the first experiment carried out with parameters that resemble realistic scenarios.

The Mijin blog post states:

“Therefore, the demonstration experiment by SBI Sumishin Net Bank can be considered as cutting-edge project ahead of all others in blockchain applications.”

According to Lon Wong, CEO of Singapore-based Dragonfly Fintech, Mijin’s blockchain solutions hold great promise for streamlining consumer banking infrastructure systems, “The Mijin/NEM Technology makes it easy to integrate with the core banking system. In fact, it should coexist with legacy core banking systems, run in parallel, and finally replacing them in the long term.” he said.

Takao Asayama, CEO of Tech Bureau Corp, explained that distributed ledger technology when correctly applied can “transform the revenue model of the banks”. Asayama also said that the system used in the trial could handle “4-digit transactions per second while geographically dispersed” and that further improvements are currently being worked on.


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