East & Partners

Bank of Tokyo and NTT DATA partner on blockchain

(8 December 2017 – Asia) The Bank of Tokyo Mitsubishi and NTT DATA Corporation announced the commencement of a Proof-of-Concept (PoC) prototype leveraging blockchain technology that would strengthen trade ties between Singapore and Japan.

The firms say the initiative, in collaboration with Singapore’s National Trade Platform (NTP), aims to make cross-border flows more secure, efficient and transparent, with the long-term goal of fostering greater trade and supply chain integration across the region.

MUFG and NTT DATA will utilise an application programming interface (API) to connect a prototype trade system currently developed by NTT DATA with Singapore’s NTP. Not only does this PoC mark the first attempt to integrate digital platforms between the two trading nations, it will see MUFG and NTT DATA collaborating to address and provide digital solutions to technical challenges prevalent in international trade, where differing trade regulations and documentation standards predominate. The initiative will also help lay the foundation for a regional digitalised trade and supply chain platform in Asia.

MUFG, an active member of the NTP working group in Singapore, has found in NTT DATA a like-minded partner that understands the importance of harnessing technology to move trade finance away from its manually-intensive, inefficient and inconsistent practices as well as facilitate greater connectivity across global and regional trade corridors.

The initiative also complements Singapore’s SMART Nation objectives and efforts at developing a regional digital economy. MUFG is a partner of initiatives spearheaded by the Monetary Authority of Singapore (MAS), including the linkage of NTP to trade platforms in other countries such as Hong Kong’s, and the MAS-led consortium focused on developing blockchain-based inter-bank payment solutions.

Motoi Mitsuishi, MUFG’s Group Head for Transaction Banking said, “This initiative is significant to MUFG on many levels. Not only is it an extension of our strategic objective of investing in digital innovation in support of our corporate clients and facilitating their cross border trade flows in this region, this PoC will go towards creating a global digital ecosystem for trade finance.

“We are very excited to partner NTT DATA on this project. With their collective experience and expertise, we are confident that we will be able to contribute meaningfully to the enhancement of regional and global trade.”

Toshi Fujiwara, NTT DATA’s Director and Executive Vice President added, “We greatly appreciate the opportunity to conduct this PoC to connect Singapore’s NTP, introduced by MUFG who is a member of working groups of trade platforms in both countries.It is significantly valuable not only for NTT DATA but also trade-related industries in Japan, to verify technical issues, find their solutions and apply standardisation. Through this PoC, we look forward to contributing to trade facilitation within the ASEAN region and all over the world.”

Deputy Managing Director, Monetary Authority of Singapore, Jacqueline Loh said, “MAS welcomes the collaboration between NTT Data and the NTP as another encouraging step towards digitalising trade and building connectivity in the region. This PoC,together with the GTCN project, demonstrates the growing momentum to digitalise cross-border trade flows and highlights Singapore’s key role as a global hub transforming trade and trade finance."