JPX conducted proof of concept tests for blockchain or distributed ledger technology (blockchain/DLT) from Apr. to Jun. 2016.
If we look at blockchain/DLT as infrastructure, it is extremely attractive in terms of high availability, impossibility of falsification, easiness of data recovery at the time of system failure, and relatively low costs.
We have found that, while there are some issues to address, if blockchain/DLT is applied to the financial market infrastructure, it can contribute to, among others, the creation of new businesses, streamlining of business operations, and cost reductions. Its application also has the potential of drastically transforming the structure of financial business.
We compiled our findings in a JPX working paper, which was published on Aug. 30, 2016. JPX will continue working on the utilization of blockchain/DLT.