Fujitsu completes blockchain-based project for cross-border transactions

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Tokyo-based technology giant Fujitsu has announced the completion of its blockchain pilot project designed to explore the interoperability of multiple systems.

Fujitsu’s pilot has been underway since January 2022, and recent results have shown promise in connecting multiple blockchains to facilitate streamlined transactions. Utilizing ConnectionChain, Fujitsu’s pilot recorded successes in cross-border securities settlements across Japan, China, South Korea, and the wider ASEAN region.

The proprietary technology relies on an “Extended Smart Contract” function that allows it to operate without third-party interference. Fujitsu said it achieved seamless interoperability by using plugins developed by Hyperledger’s Cacti, considering the peculiarities of each blockchain.

In the absence of any unforeseen events, the company stated that it would launch the Fujitsu Web3 Acceleration Platform on June 30 as a soft roll-out to select partners.

Fujitsu collaborated with blockchain infrastructure firm Consensys, Tokyo-based Soramitsu, R3, and the Asian Development Bank to test the project’s viability. The pilot involved the use of two ledgers managing the balance of two fiat currencies and a third ledger regulating the ownership of securities, all linked via ConnectionChain.

Cross-border securities settlements in Southeast Asia usually take up to 48 hours to be processed because of the time difference between the region and global centers in Europe and the U.S. However, Fujitsu remarked that transaction times would be significantly reduced if central banks and securities settlement institutions integrated their technology.

While financial markets appear to be the most obvious use case for the project, Fujitsu says it will explore other applications for its project across multiple sectors, including distribution and manufacturing.

Fujitsu has garnered significant experience in Web3 over the last three years, famously spearheading the establishment of the “Japan Metaverse Economic Zone.”

Cross-border transaction functionality fuels a global frenzy

Around the world, institutions are probing into the borderless nature of Web3 to explore opportunities to improve the state of cross-border transactions. Several governments rely on using central bank digital currencies (CBDCs) to achieve the feat, while others promote the safe use of stablecoins.

The Bank for International Settlements (BIS) has completed two CBDC pilots with cross-border functionality, collaborating with banking regulators from China, Singapore, Hong Kong, Sweden, Israel, and Norway.

Potential cross-border CBDCs must be interoperable on both technical and regulatory fronts, triggering concerns over their real-world applicability.

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