Technology major Cognizant today said it has inked a strategic agreement with Japan-based Mizuho Financial Group to develop a blockchain solution for the Japanese organisation.
The solution will help in secure record-keeping of documents among Mizuho Financial Group companies around the world, Cognizant said in a statement. No financial details were disclosed.
As part of the agreement, Cognizant will bring together its financial services, consulting and digital technology expertise to design and develop a blockchain solution for Mizuho's customers, counterparties and group companies to exchange and sign sensitive documents in a secure and transparent manner, it said.
This will result in faster, more efficient processing and multi-party verification, it added.
The engagement will initially focus on New York and Tokyo, where most Mizuho group companies are based.
"We are pleased to be among the early adopters of blockchain technology in Japan to make our processes and workflows faster and more efficient... (It will) reinforce our reputation as the most trusted financial services group," Mizuho Financial Group Deputy President and Executive Officer Toshitsugu Okabe said.
Blockchain is like a huge, decentralised ledger for bitcoin (digital currency) that records every transaction and stores this information on a global network so it cannot be tampered with.
Mizuho Financial Group has about 55,000 staff working in approximately 900 offices inside and outside Japan, and total assets of over US USD 1.5 trillion (as of March 2015).
Under the umbrella of the holding company, major group companies include Mizuho Bank (MHBK), Mizuho Trust & Banking (MHTB) and Mizuho Securities (MHSC).
"Blockchain technology is a game-changer for the financial services industry. We continue to invest in our blockchain capabilities and are going beyond cryptocurrencies into newer areas such as smart contracts and P2P transactions," Cognizant President Banking and Financial Services Prasad Chintamaneni said.
This agreement will pave the way for increased adoption of Blockchain technology at Mizuho Financial Group to minimise counterparty risks, speed up settlements, improve contractual performance, and enhance regulatory reporting, he added.
