{"id":1912,"date":"2021-12-28T11:00:39","date_gmt":"2021-12-28T02:00:39","guid":{"rendered":"https:\/\/wp.standage.co.jp\/en\/?p=1912"},"modified":"2021-12-28T11:04:50","modified_gmt":"2021-12-28T02:04:50","slug":"tokio-marine-nichido-ntt-data-standage-and-tradewaltz-jointly-conducted-a-demonstration-experiment-for-a-new-trade-settlement-system","status":"publish","type":"post","link":"https:\/\/wp.standage.co.jp\/en\/2021\/12\/28\/tokio-marine-nichido-ntt-data-standage-and-tradewaltz-jointly-conducted-a-demonstration-experiment-for-a-new-trade-settlement-system\/","title":{"rendered":"Tokio Marine & Nichido, NTT DATA, STANDAGE and TradeWaltz Jointly Conducted a Demonstration Experiment for a New Trade Settlement System"},"content":{"rendered":"

Tokio Marine & Nichido Fire Insurance Co., Ltd. (President: Shinichi Hirose, hereinafter reffered to as “Tokio Marine & Nichido”), NTT DATA Corporation (President and Chief Executive Officer: Yo Honma, \u201cNTT DATA\u201d), STANDAGE Inc. (President and Chief Executive Officer: Akinori Adachi, “STANDAGE”) and TradeWaltz Inc. (President and Chief Executive Officer: Hirohisa Kojima, “TradeWaltz”) jointly conducted a demonstration experiment to establish a new trade settlement system.
\nTaking full advantage of the results, the four companies aim to jointly create the world’s first system, by the end of fiscal year 2023, in which electronic B\/Ls (bills of lading) and digital currencies (or crypto assets) are exchanged simultenaously ensuring safe and secure trades.<\/strong><\/p>\n

1. Background<\/span><\/strong>
\nIn a trade transaction, a payment is exchanged with B\/L (* 1), a document of title representing the property of the cargo. However, due to a geographical distance between exporters and importers, they cannot directly exchange payments for B\/Ls, which creates the risk of default and requires the cost of hedging risks through banking, insurance, factoring and so forth.
\nRecently, there has been a growing movement in Japan to revise laws in order to legally acknowledge electronic B\/Ls, and many countries are considering the establishment of laws for electronic B\/Ls.
\nThere also have been discussions on the practical use of digital currencies internationally, and movements toward the practical use of CBDC (Central Bank Digital Currency) have been gaining momentum, particularly in China and Cambodia.
\nAs electronic B\/Ls and digital currencies (or crypto assets) become more widespread internationally, the potential for simultaneous exchange of digital data arises. For this reason, Tokio Marine & Nichido, NTT DATA, STANDAGE, and TradeWaltz jointly conducted a demonstration experiment to establish a new trade settlement system that realizes simultaneous exchange of digital currencies for electronic B\/Ls.<\/p>\n

* 1. Bill of Lading: A document of title that represents the right to receive delivery of goods from a carrier and also the ownership of goods.<\/p>\n

2. Demonstration Experiment<\/span><\/strong>
\n(1) Outline:
\nConfirming that the simultaneous transfer of “B\/L” digitized by the trade platform and “digital currency (or crypto assets)” is possible using blockchain technology.<\/p>\n

\"\"
\nSimultaneous Exchange of Electronic B\/L and Digital Currency (Crypto Assets)<\/strong><\/p>\n

NTT DATA provided a trading platform (TradeWaltz \u00ae (* 2)) that digitizes B\/Ls, insurance policies, invoices, etc., and interoperability technology (* 3) that links multiple blockchains, and STANDAGE provided technology for the transfer of crypto assets.
\nIn addition, several companies including Matsuo Sangyo Co., Ltd. (https:\/\/www.matsuo-sangyo.co.jp\/en\/<\/a>) and Will Be Co. Ltd. (https:\/\/willbecorp.com\/<\/a>) joined and cooperated in the verification of experiment, and provided concrete advices for its practical application.
\nThey confirmed successful simultaneous transfer of electronic B\/L and payment in digital currency through the demonstration experiment, which meant it became possible to create a completely new settlement system in trading arena.<\/p>\n

* 2: Tokio Marine & Nichido News Release (October 27, 2020) \u201cCross-Industry Investment by Seven Enterprises in New TradeWaltz\u00ae Platform – Leveraging Blockchain Technology to Digitalize Trade and Strengthen Connectivity in Asia -\u201d.
\nhttps:\/\/www.tokiomarine-nichido.co.jp\/company\/release\/pdf\/201027_01.pdf<\/a>
\n* 3: A mechanism that enables information exchange between different blockchains.<\/p>\n

(2) Demonstration period: Approximately 4 months (August 2021 to December 2021)<\/p>\n

 <\/p>\n

3. Expected Effect<\/span><\/strong>
\nBased on the results of the demonstration experiment, the following effects are expected:<\/p>\n

(1) Eliminate risks of international trade
\nIn traditional trade, there are risks that buyers cannot receive goods if they pay in advance, and sellers cannot receive payments if the shippment is in advance. Simultaneous exchange of electronic B\/Ls and digital currencies (or crypto assets) will eliminate such risks.<\/p>\n

(2) Reduce costs for importers and exporters
\nTo avoid risks related to trade payments, a third party (banks, factoring companies, insurance companies, etc.) takes over the risks and receives a risk premium as consideration. If simultaneous exchange is possible, the risk premium will become unnecessary.<\/p>\n

(3) Enhance trades among SMEs
\nDespite having technological capabilities and distinctive features, many SMEs have missed their opportunities to acquire new customers overseas because they cannot receive their payments in advance. The new system will solve such problems and stimulate trade among SMEs.<\/p>\n

(4) Simplify trade procedures
\nSimultaneous exchange of rights and obligations clarifies the ownership and transfer of property, which resolves issues related to time lags.<\/p>\n

The four companies on this project will take further steps toward establishing this world\u2019s first system by the end of fiscal 2023, taking full advantage of the results of this experiment.<\/p>\n

\u3010Contact Us\u3011
\n4F Shiba NA Building, 3-6-10, Shiba, Minato-ku, Tokyo, Japan, 105-0014
\nSTANDAGE Inc.
\nCEO: Akinori Adachi
\nCOO: Kenta Omori
\nE-mail: info@standage.org<\/p>\n","protected":false},"excerpt":{"rendered":"

Tokio Marine & Nichido Fire Insurance Co., Ltd. (President: Shinichi Hirose, hereinafter reffered to as “Tokio Marine & Nichido”), NTT DATA Corporation (President and Chief Executive Officer: Yo Honma, \u201cNTT DATA\u201d), STANDAGE Inc. (President and Chief Executive Officer: Akinori Adachi, “STANDAGE”) and TradeWaltz Inc. (President and Chief Executive Officer: Hirohisa Kojima, “TradeWaltz”) jointly conducted a demonstration experiment to establish a new trade settlement system. Taking full advantage of the results, the four companies aim to jointly create the world’s first system, by the end of fiscal year 2023, in which electronic B\/Ls (bills of lading) and digital currencies (or crypto assets) are exchanged simultenaously ensuring safe and secure trades. 1. […]<\/p>\n","protected":false},"author":1,"featured_media":1916,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[56,82,62,51,53],"class_list":["post-1912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain","tag-cryptocurrency","tag-fintech","tag-interview","tag-trade"],"_links":{"self":[{"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/posts\/1912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/comments?post=1912"}],"version-history":[{"count":3,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/posts\/1912\/revisions"}],"predecessor-version":[{"id":1917,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/posts\/1912\/revisions\/1917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/media\/1916"}],"wp:attachment":[{"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/media?parent=1912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/categories?post=1912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.standage.co.jp\/en\/wp-json\/wp\/v2\/tags?post=1912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}