The aim of the partnership is to enable domestic and international transfers 24 hours a day, 365 days a year by taking advantage of blockchain technology. Ripple technology will be adapted for the Japanese financial industry.
The alliance is expected to initially draw about 15 members, including Bank of Yokohama and SBI Sumishin Net Bank. These will consist of both large and small conventional banks, as well as online banks. A study group on making the system commercially feasible will be formed in October 2016.
Participants will share transaction histories and other data via the system, which will adopt blockchain technology. Some of the advantages the banks hope to enhance are: improving wiring services, receiving payments at night, allowing immediate shipment of items for online retailers, also investors engaging in foreign exchange margin trading would no longer miss out on opportunities, since they could wire funds to financial institutions during evening hours.
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