NewEconomy
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NewEconomy

Japan Exchange Group (JPX), Japan Securities Depository Center (JSDC), and others have begun an experiment to apply blockchain technology to the administrative work of investment trusts.

Nikkei reports that the Japan Exchange Group (JPX) and Japan Securities Depository Center (JASDEC) have begun a demonstration experiment to utilize blockchain (distributed ledger) technology for the administrative work of investment trusts. Nineteen financial institutions, including Nomura Securities, Mizuho Securities, and Mitsubishi UFJ Bank, will participate in the trial.

The purpose of the experiment is to streamline the administrative work of the multiple financial institutions involved in the investment trust business. The purpose of the experiment is to streamline the administrative work of multiple financial institutions involved in the creation and redemption of investment trusts. The two fields are to improve the efficiency of information sharing related to the buying and selling of the following items.

The two areas to be worked on in this demonstration experiment were chosen because they were requested by the operation industry and others, and they were chosen because they could easily be streamlined through the use of blockchain technology.

Editor’s Comment

The standard value of investment trusts is calculated based on the stock price managed by the asset management company and the trust bank and double-checked. By the way, the formula for calculating the base price is “base price = total net assets / total number of beneficiary rights x 10,000”.

Employees from both companies then double-check the printed data on the paper. Currently, employees are required to come to work to maintain the objectivity of the standard price. For that inefficiency, it seems that blockchain technology can be utilized and demonstration tests will be conducted.

Through blockchain technology, improving the inefficiency will reduce the product fees for investors, and it will be possible to better meet the needs of investors. As a result of the proof experiment, I hope that it will be further implemented.

(images:iStock/Oleksandr-Hruts)

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