Japan Exchange Group Begins Blockchain Trials

Japan Exchange Group (JPX) –  which operates the Tokyo stock exchange as well as the Osaka securities exchange – has revealed today that it will be working on blockchain trials with the Nomura Research Institute.

According to the release, JPX will be evaluation the application of blockchains and distributed ledgers in securities markets that have a low amount of transactions:

“JPX will conduct PoC test in cooperation with Nomura Research Institute to evaluate the limits and possibilities of the technology in markets that have low transaction data volume.”

The announcement explained that the technology has great potential for “constructing shared infrastructure to provide high availability and reliability at low cost”, but also mentioned that certain problems need to be addressed first, before any real-world implementation in the financial sector is allowed.

“However, there are issues to be resolved in the technology, and it will need to be continually verified and improved before actual application in financial business operations.”

Minoru Yokote, Managing Director at Nomura Research Institute, sides with JPX in their assessment that the implications and risks of implementing this technology need to be carefully evaluated.

Minoru Yokote said in a statement:

“As the industry increasingly looks towards what blockchain can provide to enhance operations and technology, we are focused on determining all the challenges and potential benefits of blockchain for future applications across the securities industry.”

Image credit: 1

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.