Japan-based Mizuho Financial Group has partnered with the US information technology firm Cognizant to develop a blockchain solution for secure record-keeping of documents and enhanced customer experience.
The deal is part of Mizuho’s program to use blockchain technology for developing new work processes to make transactions and digital interactions more secure.
Under the agreement, Cognizant will bring together its financial services, consulting and digital technology experience to design and develop a blockchain solution for Mizuho’s customers, counterparties, and group firms to exchange and sign sensitive documents in a secure way.
The initial focus will be on New York and Tokyo, where majority Mizuho group firms are located.
The implementation of Blockchain technology will allow Mizuho to minimize counterparty risks, accelerate settlements, enhance contractual performance and regulatory reporting.
Apart from, Mizuho, Cognizant is collaborating with several other financial services companies to help them adopt blockchain technology.
Mizuho Financial Group deputy president and executive officer Toshitsugu Okabe said: "We are impressed with Cognizant’s blockchain-based solutions for financial services organizations, and their sharp focus on this rapidly evolving technology."
Cognizant president of banking and financial services Prasad Chintamaneni said: "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."
Image: Mizuho Bank head office in Uchisaiwaicho, Tokyo. Photo: courtesy of Lombroso.