~By utilizing eB/L (electronic bill of lading) and "DCJPY," a tokenized deposit issued by Shoko Chukin Bank, we will synchronize commercial and financial flows. This will strongly promote overseas expansion and trade DX for small and medium-sized enterprises.~

STANDAGE Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director: Akinori Adachi; hereinafter "STANDAGE") and DCP Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director, President, CEO & COO: Yoshio Hirako; hereinafter "DCP") have begun joint studies on a payment-integrated trade platform (PF) with the participation of Shoko Chukin Bank, Ltd. (hereinafter "Shoko Chukin"). With the amendment to the Commercial Code that will legalize electronic bills of lading (eB/L) approved by the Cabinet in October of this year and expected to be implemented in fiscal year 2027, the two companies will verify simultaneous settlement linking eB/L with the tokenized deposit (*1) "DCJPY" issued by Shoko Chukin, with a view to commercialization in fiscal year 2028, anticipating the full-scale spread of eB/L. The aim is to "synchronize the electronic flow of trade with the flow of money" and, in the future, "increase the transparency and speed of the flow of money."

■ Background and Social Issues

In current trade practices using paper bills of lading (B/L), the risk of non-payment in payment settlements and the time loss associated with mailing paper documents are factors that put pressure on the cash flow of small and medium-sized enterprises (SMEs). Furthermore, the problem of high demurrage charges resulting from cargo arriving before the bill of lading is also becoming serious, making efficiency improvements through digitalization an urgent necessity.
Currently, the environment for the digitalization of trade and finance is rapidly being developed both domestically and internationally. In line with the UNCITRAL Model Law (MLETR), a bill to amend the Commercial Code concerning electronic bills of lading (eB/L) was approved by the Cabinet on October 23rd of this year, and legal preparations for implementation by fiscal year 2027 are now in full swing. Furthermore, against the backdrop of the government's promotion of on-chain finance in its "Basic Policy 2026" and the need for advanced compliance (AML/CFT) in response to stricter FATF scrutiny in the banking industry, the transition to next-generation payment infrastructure utilizing blockchain has become an inevitable choice.
Against this backdrop, the introduction of electronic bills of lading (eB/L) and other technologies is advancing the digitalization of "commercial flows (documents and data)," and an environment is being created to smoothly link digital data with the actual movement of goods, or "logistics (movement of goods)." However, true efficiency in the overall trade procedure cannot be achieved as long as the final "flow of money (payment)" remains separate from these processes. Furthermore, traditional overseas remittances via SWIFT and other methods require time and cost to receive funds, and the uncertainty of cash flow is hindering the global expansion of small and medium-sized enterprises (SMEs).

To address the "separation of commercial/logistics flows and financial flows," which is the biggest bottleneck in trade DX, we will begin joint studies using this model and proceed with preparations for a demonstration experiment.

■ Purpose

The first phase of this initiative aims to demonstrate the "synchronization of commercial transactions and financial flows" by linking trade documents such as eB/Ls with tokenized deposits, and to establish a practical operational model for commercialization in fiscal year 2028. This will eliminate time lags and improve operational efficiency in the trade operations of small and medium-sized enterprises (SMEs). Furthermore, with an eye toward future connectivity to cross-border payment networks, this initiative will develop into "transparency and acceleration of financial flows," contributing to the construction of a sustainable social and industrial foundation in Japan by reducing overall trade procedures costs, ensuring transparency in supply chains, and increasing resilience.

■ Contribution to trade stakeholders and related industries

This initiative aims to build a DvP settlement scheme that links electronic bills of lading (eB/L) with tokenized deposits "DCJPY". The following benefits are anticipated from the realization of this scheme:

• Reducing the risk of non-payment and accelerating fund collection for exporting companies: STANDAGE will integrate the eB/L platform of CargoX (*2), which it uses, with DCP's tokenized deposit platform "DCP" and aim to achieve reliable DvP (simultaneous performance) through automated processing using smart contracts. This will significantly reduce the risk of non-payment associated with goods delivered first. Furthermore, by going paperless, it will reduce delivery costs such as international courier fees and administrative costs associated with the exchange of paper documents, eliminate the time lag of mailing documents, and shorten the lead time from shipment to fund collection.
• Avoiding demurrage and flexible settlement for importing companies: Smart contracts, operating 24/7, eliminate the physical constraints of traditional methods such as mailing paper documents or visiting bank branches, allowing for online procedures (applications) to be completed at any time in accordance with the container's movement. After the bank's required verification, the transfer of eB/L rights and settlement become possible, preventing delays in cargo pickup due to delayed document arrival and avoiding the incurrence of high additional costs such as demurrage.
• Smooth implementation of digital trade settlements: DCP provides a secure large-scale digital settlement environment using the tokenized deposit "DCJPY" on its tokenized deposit platform "DCP". It can be used with the same ease as a regular bank account, without requiring companies to build large-scale systems or change their accounting flows.
• Paperless operations for improved efficiency and structural reform: By digitally completing and centralizing trade procedures, we will drastically reduce incidental costs such as postage and processing time. Utilizing blockchain technology will enhance visibility and resilience, while eliminating the physical transport of paper will reduce environmental impact (CO2 emissions), creating a sustainable and efficient next-generation trade infrastructure.

■ Ripple effects on related industries from the establishment of this model

• Rapid entry of financial institutions into trade DX and system scalability: In the future, other financial institutions will be able to issue tokenized deposits on the tokenized deposit platform "DCP" and easily link with STANDAGE's trade platform "DigiTrad Payment," creating a highly scalable network infrastructure. Furthermore, it is designed to be flexible, with a view to expanding not only to domestic payment infrastructure but also to international remittance networks in the future.
• Immediate Introduction of Trade DX and Strengthening of Governance for Small and Medium-Sized Enterprises (SMEs) through Financial Institutions: Because each financial institution can utilize the platform under consideration with minimal system modifications, SMEs can quickly introduce the latest trade DX mechanisms through their usual financial institutions without requiring major system modifications. At the same time, advanced AML/CFT (Anti-Money Laundering/Counterfeiting) management using digital evidence and paperless operations will strengthen governance on the part of financial institutions and significantly improve the efficiency of their administrative processes.

■ Future developments

Through future pilot projects, both companies will accelerate the establishment of systems, technologies, and practical workflows, with a view to the following developments toward commercial service launch in fiscal year 2028.

• STANDAGE: Quickly integrate this payment function into "DigiTrad Payment" to complete trade operations.
  We enable paperless transactions and instant settlements. By eliminating the complexity of procedures and settlements, we support small and medium-sized enterprises (SMEs) in their new challenges in trade transactions and promote sustainable sales growth.
• DCP: By providing advanced digital payment infrastructure, we promote the creation of a next-generation economic ecosystem co-created by financial institutions and platform operators. This scheme, equipped with "the security of bank deposits and strict compliance," will serve as a model case for large-scale B2B payments, seamlessly linking digital data for trade procedures with fund settlements on bank systems, thereby accelerating industrial DX. Looking ahead, we envision collaboration with international payment networks such as "Partior," and will strongly support improved capital efficiency for companies by evolving traditional overseas remittances into "more transparent" and "faster" processes.

(*1) Tokenized deposits: These are bank deposits that utilize technologies such as blockchain to allow deposits to be handled digitally. By combining them with smart contracts (automated execution programs), they enable advanced business automation and instant settlement.

(*2) About CargoX: CargoX is a global electronic bill of lading (eB/L) management platform developed by CargoX Inc. and approved by the International P&I Group (Mutual Marine Insurance Association). It also meets the international standard interoperability requirements set by the non-profit organization DCSA (Digital Container Shipping Association), and is evaluated as a scalable and reliable system that will enable seamless data exchange between different eB/L platforms in the future.

[reference]
Announcement of this initiative by Shoko Chukin Bank: For Shoko Chukin Bank's announcement regarding this initiative, please refer to the company's press release issued on the same day.
https://www.shokochukin.co.jp/assets/pdf/nr_261028_01.pdf

■About STANDAGE

Company Name: STANDAGE Co., Ltd.
Established: March 7, 2017
Representative: Akira Adachi, President and CEO
Address: Sumitomo Fudosan Landmark Plaza 3F, 1-6-7 Shibakoen, Minato-ku, Tokyo 105-0011, Japan
Capital: 367 million yen
Business activities: Development and provision of digital trade platforms (trade cloud, digital trade payment) and trade settlement systems using blockchain; provision of export support services for small and medium-sized enterprises ("Omakase Trade") (outsourcing and support of overseas market development and trade operations).
URL: https://standage.co.jp/

■ About DCP

Company Name: DCP Co., Ltd.
Established: December 27, 2021
Representative: Keisuke Hirako, Representative Director, President & CEO & COO
Location: 2-10-2 Fujimi, Chiyoda-ku, Tokyo
Capital: 100 million yen
Business Description: Digital currency business / Electronic payment service provider. Kanto Local Finance Bureau Director (Electronic Payment) No. 150
URL: https://www.dcjpy.com/

■ Contact information regarding this matter
STANDAGE Co., Ltd.
Marketing and Public Relations
TEL: 03-6435-3371
E-mail: info@standage.co.jp