Japanese financial institutions have joined hands with R3 blockchain consortium and announced the successful completion of testing of a prototype that was developed by R3 Corda, a blockchain platform, to streamline ISDA Master Agreement negotiation.

The Japanese banks involved in the blockchain test include Nomura Holdings, Inc., Daiwa Securities Group Inc., Mizuho Financial Group, Inc. and Sumitomo Mitsui Banking Corporation.

The blockchain prototype has been designed in order to remove the usage of e-mails, at the same time making sure that agreed terms and conditions can be securely recorded and stored on the DLT platform in a sequential order. Corda’s technology will enhance the transparency as well as reduce the efforts in managing relevant data, that would facilitate the negotiation process.

“Following the successful completion of the prototype test, the group plans to identify other areas where this technology can be applied, such as other contract negotiation processes and product development,” the release stated.

The five companies have also participated in the identification of business requirements, with Nomura and Daiwa Institute of Research Ltd. that is leading to the development of CorDapp, which is a distributed application built on Corda.