Mizuho, along with Marubeni Corporation and Sompo Japan Nipponkoa Insurance, recently completed a blockchain-based trade transaction between Australia and Japan.

In its official release, Mizuho explained that the project involved a trade transaction between the two countries in which all trade-related processes – from issuing the letter of credit to delivering trade document – were completed entirely via blockchain or distributed ledger technology (DLT). On the basis of the results, the involved parties listed the following benefits of blockchain or DLT:

• Shorter delivery time for trade documents
  • Reduced from multiple days (typical length) to 2 hours
• Reduction of time required to create and transmit documents, as well as labor and other costs through document digitization
• Increased transparency by sharing transaction details with all parties

However, a number of issues also came to the forefront. First, it is not possible to transmit trade transaction information in blockchain format to parties that do not use the platform. Secondly, in order to enable the transmission of the wide variety of information necessary for trade transactions, standardizing the information for blockchain at an international level is required.

Mizuho said that it further aims to explore the practical business application of blockchain to offer technologically sophisticated and client-focused services.

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