Bank of Tokyo-Mitsubishi UFJ (BTMU) intends to begin managing its contracts on a blockchain-based platform.

Built on technology provided by the still in-development Hyperledger project and the design services of IBM, the two companies revealed today that the platform will manage service level agreements between BTMU and other third parties, starting first with IBM.

According to a release, IBM and BTMU will first trial the service by transacting with each other over the platform. BTMU intends to migrate to the new contract management platform, by the end of fiscal year 2017.

IBM said:

“To help improve efficiency, IBM and BTMU will monitor delivery and usage of equipment with a sensor that embeds information into the blockchain. This will then automate invoicing and payment processes between the two companies.”

In statements, IBM said the project represents the fruit of its continued investment and research into blockchain, which was first revealed at the end of 2015 with its involvement in the Hyperledger project.

BTMU further said the project will help provide evidence that blockchain-based technology can lead to business efficiencies.

“Today, we are embarking on a journey with IBM to exploit the potential of this new technology,” Motoi Mitsuishi, deputy CEO of BTMU Asia & Oceania, said.

Antique compass image via Shutterstock

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