The effectiveness of Fujitsu’s “ConnectionChain” technology for cross-border securities settlement demonstrated in Asian Development Bank’s field trials
TOKYO, Jun 15, 2023 – (JCN Newswire) – Fujitsu today announced the successful completion of a year-long pilot project which began in January 2022 for its proprietary “ConnectionChain” blockchain technology with the Asian Development Bank, blockchain vendor ConsenSys Software Inc., R3, and SORAMITSU, LTD demonstrating its effectiveness in streamlining and enhancing the safety of cross-border transactions (1) of financial securities.
|Figure 1: Adding ledger linkage function to Data e-TRUST
The trials integrated “ConnectionChain” to realize a system that can connect multiple blockchains to securely facilitate transactions between different economic areas. The trials focused on improving cross-border securities settlement in regions including ASEAN, Japan, China and South Korea.
Based on the results of the project, Fujitsu will begin offering a trial environment, “Fujitsu Web3 Acceleration Platform,” which integrates “ConnectionChain” to enable flexible, secure connectivity across multiple economies from June 30, 2023. Fujitsu’s Web3 Acceleration Platform offers a number of “Fujitsu Computing as a Service Data e-TRUST” (“Data e-TRUST”) technologies to partners participating in the “Fujitsu Accelerator Program for CaaS,” Fujitsu’s global partner co-creation program for its Computing as a Service platform.
Going forward, Fujitsu anticipates applications for the technology for a wide range of payment use cases, not only in the financial industry, but also in the distribution and manufacturing industries. By conducting verification tests with various partners, Fujitsu will further promote the social implementation of Web3 related technologies such as blockchain, and create new markets through “Hybrid IT,” as a part of its vision to create the digital infrastructure to realize a connected society under “Fujitsu Uvance.”
Development function added to “Data e-TRUST”
“ConnectionChain,” which will be added to “Data e-TRUST,” allows the “Extended Smart Contract” feature to function autonomously, enabling multiple external blockchains to operate as one integrated system. To connect different kinds of blockchains, it is necessary to develop a connection that absorbs the differences in the specifications of each blockchain, but since each type of blockchain needs to be developed, “ConnectionChain” has streamlined this development by incorporating plugins called Cacti-LP（Ledger Plugins), developed by “Hyperledger Cacti,” an OSS project hosted by the Hyperledger Foundation (2) on the theme of ensuring interoperability. This enables “Data e-TRUST” to connect to the various blockchains supported by “Hyperledger Cacti,” making it easier to build new Web3 services.
Fujitsu will also develop Cacti-LP to connect “Data e-TRUST” from third-party blockchains that support Hyperledger Cacti, and contribute the source code to the “Hyperledger Cacti” development community to accelerate the delivery of Web3 services to external partners via “Hyperledger Cacti.”
Pilot project of “ConnectionChain” for cross-border securities settlement
In cooperation with the Asian Development Bank, ConsenSys, R3, and SORAMITSU, Fujitsu has developed a system to interconnect the networks of each company through “ConnectionChain.” Fujitsu has successfully confirmed the operation of a project aimed at improving the efficiency and safety of cross-border transactions that simultaneously conduct overseas remittances and the delivery of securities assuming their use by central banks and securities settlement institutions in each country. In this experiment, two ledgers to manage the balance of two legal currencies and a ledger to manage the ownership of securities were actually built, and these three decentralized ledgers were implemented in “ConnectionChain” in accordance with current transaction rules that are observed by all financial institutions involved in transactions. This project is a field trial aimed at improving the efficiency and safety of cross-border securities transactions in ASEAN, Japan, China and South Korea, where settlement takes at least two days due to the time difference between the global centers in Europe and the United States and the difference in market transaction time. Fujitsu, anticipating that central banks and securities settlement institutions around the world might one day use this system, has developed a cross-border securities settlement system by connecting the decentralized ledger technology and blockchain-based financial system, which ConsenSys, R3 and SORAMITSU have developed experimentally, with “ConnectionChain.”
(1) Cross-border transactions:
transactions between multiple countries across national borders
(2) Hyperledger Foundation:
A blockchain open-source community under the umbrella of The Linux Foundation, a nonprofit organization in the United States.
Fujitsu’s purpose is to make the world more sustainable by building trust in society through innovation. As the digital transformation partner of choice for customers in over 100 countries, our 124,000 employees work to resolve some of the greatest challenges facing humanity. Our range of services and solutions draw on five key technologies: Computing, Networks, AI, Data & Security, and Converging Technologies, which we bring together to deliver sustainability transformation. Fujitsu Limited (TSE:6702) reported consolidated revenues of 3.7 trillion yen (US$28 billion) for the fiscal year ended March 31, 2023 and remains the top digital services company in Japan by market share. Find out more: www.fujitsu.com.
Public and Investor Relations Division
Source: Fujitsu Ltd
Sectors: Cloud & Enterprise, Crypto, Exchange, Blockchain Technology, FinTech
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