Case Study: Blockchain/DLT Prototype Development

The Client

The customer is a Japanese financial services corporation that operates multiple securities exchanges including Tokyo Stock Exchange and Osaka Securities Exchange.

The customer is the world’s third largest (behind NYSE Euronext and NASDAQ OMX Group) and Asia’s largest bourse.

Business Needs

In cooperation with a wide range of stakeholders, such as financial institutions and IT vendors, the consortium of Japanese financial institutions conducts proof of concept (PoC) testing and research to discuss the possibility of applying Blockchain or distributed ledger technology (DLT) to capital market infrastructure.

The consortium consists of 33 Japanese financial institutions and other related organizations, which deploy DLT applications for financial infrastructure developed by financial institutions, IT vendors, and other related entities, as well as issue proposals on PoC testing and assess the need for such applications.

Solutions

  • Seller-side and buyer-side input agreement information and allocation information, respectively, and save it in Distributed Ledger Technology (DLT). FPT provided a function to match matching condition by performing matching by contracted smart contract against contracted information and allocation information entered respectively.
  • In order to ensure confidentiality of data between participants, the data was separated and secured confidentiality by Multi-Channel / Sub-ledger implemented in Hyperledger Fabric v1.0.
  • In addition to input from the Web screen, FPT implemented the input function by CSV file assuming middle system linkage.
  • FPT is responsible for Blockchain platform deployment & UI development.

The Benefits

  • Removed multiple intermediate steps.
  • Reduced manually mutual reconciliation
  • Reduced business, reporting and auditing costs as well as counterparty risks

 

Technical Details

  • Using Blockchain/Distributed Ledger Technology(DLT) (private Blockchain)
  • Match matching condition by performing matching by contracted smart contract
  • Requiring multiple-signature of all participants to finalize results of matching
  • Data was separated and secured confidentiality by Multi-Channel / Sub-ledger implemented in Hyperledger Fabric v1.0
  • Paying attention on reference authority