Company Daiwa Securities Group, the second largest broker on securities in Japan, announced the completion of proof of concept (PoC) for blockchain technology.
According to a press release, the pilot project involved 26 partners Daiwa, including financial institutions, system vendors and institutional investors. The purpose of the pilot was to increase the efficiency of the processes post trading, by transferring the existing features on the blockchain. The project was divided into two phases, the brokerage firm has completed both.
In the published results of the pilot project, the company noted that the implementation of standardised specifications and workflows on the blockchain system is expected to reduce operating costs and simplify the development of new products and services. The report noted that “standardization will bring significant benefits to investors who are the ultimate beneficiaries.”
Daiwa believe that the introduction of the standardized blockchain system of post-trading for a wide range of companies will need a more collective effort.
“We may need to create a new organization or consortium that will be responsible for the development and system administration, budget management and stock replenishment. We are going to discuss in more detail the scope of cooperation with market participants and conduct a feasibility study to bring this concept to life,” — said in a press release.
According to the results of the pilot, the brokerage firm pointed to the limitations of the blockchain technology that must be overcome. In particular, the DLT-decision needs to improve information security and timely updating functions to monitor changes in the business environment and the needs of users, think of Daiwa.
We will remind that earlier the blockchain-a platform to accelerate post-trading processes have tested the Hong Kong stock exchange (HKEX).