Nine Japanese institutions complete the second phase of Project Trinity, successfully executing two test transfers of security and payment tokens across separate blockchains. The trials, involving Daiwa Securities and SBI Securities, model trades on the Osaka Digital Exchange's START market. By utilizing SBI VC Trade's corporate bond tokens and Sumitomo Mitsui Banking Corp.'s trust-backed stablecoin, the project tests delivery versus payment (DvP) to evaluate if blockchain technology can support a standard T+2 settlement cycle.
Project Trinity blockchain settlement tests
- ▪Nine Japanese institutions completed the second phase of Project Trinity by executing two test transfers that settled security and payment tokens across separate blockchains.
- ▪The Project Trinity blockchain tests evaluated whether linked token transfers could support a standard T+2 settlement cycle, which completes transactions two business days after a trade.
- ▪The Project Trinity transfers tested delivery versus payment (DvP), a process that directly links the delivery of a security with its corresponding payment.
Japanese institutional participants
- ▪Daiwa Securities and SBI Securities conducted Project Trinity test transfers modeled on trades in the Osaka Digital Exchange's START market.
- ▪The Project Trinity tests utilized corporate bond tokens issued by SBI VC Trade and a trust-backed stablecoin issued by Sumitomo Mitsui Banking Corp.
Debatable claims
- ▪Trust-backed stablecoins are reliable enough for institutional transactions
- ▪Private bank stablecoins are preferable to central bank digital currencies for tokenized settlement
- ▪Blockchain technology is ready for mainstream institutional settlement
- ▪Blockchain financial platforms should prioritize instant settlement over T+2 cycles
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