SBI SECURITIES and IBM Test Blockchain for Bond Trading
IBM has announced that SBI SECURITIES is testing the potential of blockchain technology for a new type of bond trading system. Working in collaboration with IBM, SBI SECURITIES intends to make blockchain technology for securities operations commercially available in the future.
SBI SECURITIES intends to verify the potential of applying blockchain technology to bond trading operations, scrutinize barriers or complexity in using the technology for its operations, and prepare to apply the technology to actual operations. Using the Hyperledger Fabric, SBI SECURITIES will test the product cycle of registering a bond until its reimbursement.
Areas which will be examined include improving efficiency and automation of operations by sharing databases, the possibility of reducing infrastructure costs by sharing among the parties involved, the possibility of substituting the existing operational processes, and the evaluation of blockchain technology for securities operations and systems.
Hiroyuki Ogawa, Executive Officer of SBI SECURITIES, said: “This test aims to scrutinize barriers or complexity for practical use, develop a plan for deployment, and accumulate knowledge through applying blockchain technology to our products. Adopting the Hyperledger Fabric, an open technology platform, and working together with IBM Japan, the leader in this area, we expect that this verification test will speed the rate of adoption of blockchain technology in the financial trading area.”
A recent IBM study identified equity and debt issuance as one of four areas that should benefit most from the process improvements introduced by blockchain technology. IBM Japan will support SBI SECURITIES by providing access to its global resources including IBM Bluemix Garage for Blockchain in Tokyo, IBM Consulting Services and IBM Research expertise in Japan.
Director of IBM Research in Tokyo, Takeshi Fukuda noted: “As an innovative technology, blockchain has the potential to revolutionize ways businesses work together with their ecosystem of trading partners. The technology establishes accountability and transparency while streamlining business processes. IBM is driving an open source, open standards blockchain fabric and community through the Hyperledger Project, and leverages this technology to transform businesses in various industries. We are delighted to work with SBI SECURITIES to create innovative solutions for financial industry. “