Bank of Tokyo and Hitachi test blockchain-based check processing in Singapore

Bank of Tokyo-Mitsubishi UFJ and Hitachi are developing a system for processing electronic check payments based on the blockchain concept behind the bitcoin digital currency.



The effort, taking place in Singapore, marks the first overseas venture by such leading names in Japanese banking or industry in the emerging field of financial technology. It is a field where Japan's banks have made a slow start.



The Mitsubishi UFJ Financial Group unit and Hitachi have already built a prototype that they plan to use in full-fledged trials beginning as soon as Monday. They aim to have the system working by 2018 at the earliest.



The partners envision the system being used broadly by local businesses and banks, with possible applications beyond check payments.



For Hitachi, success could mean future system development orders. BTMU seeks the business advantages in Asia that a bigger presence in fintech could confer.