Japan’s Shinsei Bank has entered into a memorandum of understanding with ConsenSys to expand its blockchain applications in finance. The partnership was signed between Nippon Wealth Limited, ConsenSys, Tribay Capital and Shinsei Bank. It is noteworthy that Shinsei Bank is the largest shareholder of Nippon Wealth Limited.
Announcing the conclusion of the partnership, the press release published Nov. 6, 2018 read:
“We are also pleased to announce that an agreement on business alliance with four enterprises, including the co-founder of Ethereum and founder of global blockchain company ConsenSys (from New York, USA; CEO: Joseph Lubin) has been concluded.”
The Partnership Details
ConsenSys is a blockchain startup founded by Ethereum (ETH) co-founder Joseph Lubin. The company focuses on enterprise solutions, building decentralised apps (dApps) and development of tools for blockchain ecosystems.
An excerpt of the press release read:
“Nippon Wealth is excited to build on the business alliance between Shinsei Bank in Japan and ConsenSys, and to have the opportunity to bring innovation to the fintech space. Through the business collaboration of the four enterprises — ConsenSys, Tribay Capital, Shinsei Bank and Nippon Wealth.”
The alliance between the four players will emphasise on using ConsenSys’ Dapps to develop novel financial products and services. In the partnership, Hong Kong-based Nippon Wealth will pilot the study of blockchain protocols and infrastructure for the banking sector. The press release states that:
“In the light of the above, Hong Kong — the No.1 asset management centre in Asia — will be our stage for providing ‘asset management products of world standards’ with ‘Japan Quality Services’ for the good of numerous private investors. We will take a step forward as a newly-fashioned financial institution with digital banking service.”
Upon the completion of the study, the parties expressed that they anticipated rolling out their offerings and details of their services at a “later date.”
Interestingly, a cybersecurity subsidiary of Japan’s Nomura Research Institute, NRI SecureTechnologies, made another partnership with ConsenSys this week. The two developed a tool that will detect and report security vulnerabilities in information systems and services that use blockchain. The initial use of the new tool will be in monitoring smart contracts on the Ethereum platform.
Japan Optimistic On Blockchain
Increasingly Blockchain is becoming a vital element of Japan’s financial sector. Notably, IT behemoth Fujitsu announced in October that it intends to use blockchain technology to build an interbank settlement platform. In the venture, Fujitsu will work with nine banks. In the same month, Japanese financial services giant SBI Group launched a Ripple (XRP)-powered settlement system. The system used Ripple’s xCurrent to facilitate domestic bank-to-bank transfers in “real time.”