Today the Japan Securities Clearing Corporation (JSCC) announced it is using blockchain to settle rubber futures. Blockchain is being used for digitizing the paperwork involved in the physical delivery of the rubber when futures mature. Now the JSCC is eyeing the potential for larger commodities such as gold and platinum.
The JSCC is the main central counterparty in Japan responsible for clearing Tokyo Stock Exchange transactions, listed commodity derivatives and several kinds of over the counter (OTC) transactions, including credit default swaps and Japanese government bonds.
In Japan, Rubber futures are settled using a ‘delivery order’ which is similar to a shipping certificate in the United States. The seller gets a document with a seal attached by the warehouse operator confirming the storage of the goods. And the document is sent to the buyer for settlement.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
