IBM works with BI Securities to Test Blockchain Technology for Bond Trading Platform

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To help developers quickly begin exploring the use of blockchain in the enterprise, IBM today announced new blockchain services on the IBM Cloud and IBM Garages to open in London, New York, Singapore and Tokyo. These and other advancements using IBM Blockchain will rapidly enable the use of distributed ledger technology across multiple industries. IBM blockchain user experience designers, Dante Guintu and Andrea Lee, work on secure blockchain apps at IBM San Francisco on Tuesday, February 16, 2016. (George Nikitin/Feature Photo Service for IBM)

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IBM today announced 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:

• entire product cycle of registering a bond until its reimbursement;
• improved efficiency and automation of operations by sharing databases;
• possibility of reduced infrastructure costs by sharing among the parties involved;
• possibility of substituting the existing operational processes;
• evaluation of Blockchain technology for securities operations and systems.

“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,” said Hiroyuki Ogawa, Executive Officer, SBI Securities. “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 “Blockchain Rewires Financial Markets: Trailblazers Take the Lead,” found that Trailblazers, or early adopters, identified equity and debt issuance as one of four areas that should benefit most from the process improvements introduced by Blockchain technology. Asked where Blockchains would best open up new transformational business models, Trailblazers named: equity and debt issuance (86 percent), clearing and settlements (82 percent), and wholesale payments (82 percent). A concentration of pilots in these areas is one indication that the financial markets industry may have been attracted first to those activities that may deliver significant business value whilst not subject to great regulatory complexity.

“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,” said Takeshi Fukuda, Director, IBM Research – Tokyo. “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. “

IBM Japan will support SBI Securities (sbisec.co.jp) by providing access to its global resources including IBM Bluemix Garage for Blockchain in Tokyo, IBM Consulting Services and IBM Research expertise in Japan.

IBM is rapidly expanding its Blockchain consulting services and capabilities and actively working with clients to understand what it takes to make Blockchain ready for business. Through its open source contributions and resources for Blockchain software developers, IBM is advancing the science of Blockchain, helping to remove complexity, and making it more accessible and open. Financial services, supply chains, IoT, risk management, digital rights management and healthcare are some of the areas that are poised for dramatic change using Blockchain networks.

About Richard Kastelein

Founder, Publisher and Editor in Chief of Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC, Richard Kastelein is also an advisor with a number Blockchain startups doing ICOs including DECENT.ch, Inchain, Humaniq, Chronobank, eGaas and others.

He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List. As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven etc, where he helped spread the cause for Blockchain technology and crypto-currency and, consequently, has built a notable network inthe scene.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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