Japanese banking agencies continue to penetrate the world of distributed ledger technology in search of more efficient and fast financial services for the entire nation. In order to continue innovating in this sector, four Japanese banks have tested the new blockchain-based private platform of the R3CEV consortium.

According to news sources, Nomura Holding, Daiwa Securities Group, Mizuho Financial Group and Sumitomo Mitsui Banking Corporation recently conducted tests of the R3 consortium's Corda platform to streamline the typical negotiations of the Financial Operations Framework Agreements, better known as ISDA .

ISDA is an organization that groups all the sectors in charge of the financial products based on the assets, which are governed under a specialized management regulations for the operations that manipulate the shares, the income values, the raw materials and the indices Securities, among other types of financial derivatives.

The operation of these ISDA instruments is required essentially to coordinate the internal functions of financial institutions, as well as to negotiate the terms of third-party contracts that are external to the banking agencies. All these processes are traditionally conducted by means of e-mail, where all the data of the firms managed by the bank are registered and stored.

Through this platform banks can reduce the costs and complexity of managing large amounts of financial data, facilitating the process by eliminating the use of e-mail. In this way, the terms of agreement and conditions of negotiation of the financial agencies will be registered and stored safely in the platform DLT, technology that will order with time marks all the information.

The banking group has the objective of applying Corda in its systems to provide greater transparency to any type of negotiation in the sector, as well as to reduce the efforts of storing and storing data on the network. Companies believe that blockchain could facilitate negotiation processes and have proven, through these recent platform tests, that the technology works without major setbacks.