Japanese fee firm JCB and Mizuho Financial institution are testing the blockchain-based ID
Large financial institutions in Japan are moving on blockchain to streamline digital identity systems.
Japan's third largest bank, Mizuho Bank, and local payment giant JCB are preparing to pilot a blockchain technology-based interoperability system for digital identity. The new system will use a blockchain solution developed by Fujitsu Laboratories, Fujitsu announced on October 15.
The new joint initiative enables companies to review mechanisms by which member ID information from multiple business operators can be securely transmitted and linked. This data includes names, addresses and employers that are stored on a cloud platform created by Fujitsu. 100 Fujitsu Group employees will also be involved in the pilot project. The pilot is expected to last around four months.
All three companies – Fujitsu, Mizuho Bank, and JCB – have shown some interest in the blockchain industry in recent years.
Fujitsu has been applying blockchain technology to tools for managing digital identity since 2019. In July 2019, Fujitsu Laboratories presented its blockchain-based solution for assessing the identity and trustworthiness of user credentials in online transactions. The tool reportedly allows users to assign each member a "trustworthiness rating" based on user ratings stored on a blockchain.
In late 2019, JCB – Japan's leading credit card company – announced plans to launch a new blockchain-based B2B payment solution. To develop the platform, the company worked with the blockchain-based commercial payment platform Paystand. In May 2020, JCB also worked with the technology accelerator Techfund to build a sustainable transaction system on the blockchain.
In February 2019, Mizuho Financial Group also announced plans to launch a digital currency platform for payment and remittance services.