The Bank of Tokyo-Mitsubishi UFJ and Hitachi are currently engaged in a collaboration to build and test a blockchain-based system that will process and validate checks payments.

The institution and private companies –who focus on technology products and systems– have developed a prototype that will enter a test phase as soon as Monday, August 22. The effort will take place in Singapore, and it is the first time a Japanese-lead FinTech effort takes place overseas.

The goal of the venture is to have a cross-border validation system that can be used by bank and businesses to quickly validate and confirm payments made by check. The system could enter full fledge operations by 2018 at the earliest, according to the original source of the information (Nikkei).

The publication also notes that the benefits for the companies launching such system could be an increased presence in the finance technology sector, which, according to the publication, has been lacking in the Asian region.

Handwritten checks can take up to two days to pass through, which is a long period by modern standards. Up to 60% of the payments in Singapore are made by check, so it’s not surprising that a demand for check validation systems exists.

Mitsubishi UFJ (member of the MUFG conglomerate) is allegedly developing a proprietary blockchain-based payment system named MUFG Coin. The company hs also established a key alliance with Coinbase –which included a $10 million investment in the Digital Assets startup–.

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.