Japanese firms Mitsubishi UFJ Financial Group (MUFG) and NTT Data announced yesterday the launch of a blockchain proof-of-concept aimed to foster trade between Singapore and Japan.

With participation from Singapore's National Trade Platform (NTP), the cross-border pilot is being designed to ease international trade flows in a "secure and transparent" way by connecting digital platforms in the two countries using blockchain.

According to a press release, the collaboration will see the partners utilize an API that will connect an NTT Data-developed prototype trade system with the NTP, as well as collaborate on tackling technical issues in cross-border trade.

Toshi Fujiwara, NTT DATA's director and executive vice president stated:

Notably, MUFG and NTT Data are no strangers to blockchain technology.

NTT launched a new consortium this August in a move to investigate use cases for blockchain technology. The initiative includes 13 major companies, including MUFG, from sectors such as banking, insurance, exports and imports.

MUFG has instigated a number of projects involving the tech, including most recently cross-border payment services in collaboration with Standard Chartered.

Singapore road image via Shutterstock