Mizuho Intends to Use Blockchain in its Internal Recordkeeping

News and Analysis

Mizuho Financial, one of Japan’s three largest banks, has announced it intends to integrate a blockchain-based solution for internal recordkeeping purposes.

“We are pleased to be among the early adopters of blockchain technology in Japan to make our processes and workflows faster and more efficient,” stated Toshitsugu Okabe, deputy president and executive officer of Mizuho Financial Group.

Among other things, the bank is known for having been a banking partner of notorious Mt.Gox exchange. Following its collapse, two class action lawsuits were filed naming the bank as a defendant. In the lawsuits, the bank was accused of operating Mt.Gox funds collectively with customer funds, which the suitors believed had prompted the eventual stealing of funds. One of the complainants, Gregory Greene even stated that “Mizuho profited from the fraud” back then. Some of the lawsuits related to the collapse of Mt.Gox are still ongoing.

However, now the bank intends to begin a “strategic program” in partnership with IT consulting company Cognizant. The latter will develop a customized blockchain solution for Mizuho to enable the companies and subsidiaries of Mizuho to securely exchange sensitive data. The move also seeks to cut expenses and enhance internal processes and interactions.

The initial plan for the partnership between Mizuho and Cognizant is to connect Mizuho’s Tokyo and New York offices. However, given Mizuho has subsidiaries in other regions, including Asia, Europe, the Middle East, and South America, the blockchain solution may possibly be implemented there afterwards.

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