Fourteen of Japan’s largest banks and securities firms will start a pilot project for a block-chain-based in-heritance platform. The pilot project, led by Sumitomo Mitsui Trust Bank, will start in mid-February. If successful, the country’s financial institutions could aim to introduce the solution before the end of 2020.
According to Nikkei, Sumitomo Mitsui Trust Bank was supported in this project by another banking subsidiary of the Sumitomo Group as well as banking groups of financial heavyweights such as Mitsubishi UFJ, Mizuho and Nomura Securities.
The project could also simplify the process for people who want to change their name by deed, using block chain technology to help people eliminate lengthy, paper-intensive protocols.
However, the main purpose of the platform appears to be to simplify procedures when issuers, banks and investment firms need to transfer ownership of assets such as savings, shares and units of deceased clients to their legal heirs.
Companies believe that their new block-chain controlled solution is tamper-proof and cost-effective.
They say the solution could shorten the time needed to process inheritance transfers – a process that normally takes up to five months.
Sumitomo Mitsui Trust Bank, an internet-only bank of Sumishin SBI Net Bank, recently started accepting fast Fiat deposits for customers of the Huobi Japan Crypto Exchange.
And last year, the same Sumitomo banking branch, together with NEC and IBM, began piloting the effectiveness of block chain technology and AI solutions in the trust business.