Nine Japanese institutions including Mitsui Sumitomo Bank, Daiwa Securities, SBI Securities, Progmat and Datachain have completed Phase 2 validation of Project Trinity.
According to a recent report by CoinDesk Japan, Project Trinity is focused on removing risks that arise from settlement timing gaps when using delivery-versus-payment (DvP) settlement.
If securities and cash are transferred separately, there is a risk that only one side is delivered. Preventing that is the core goal.
In the test, Daiwa Securities and SBI Securities simulated the START market of the Osaka Digital Exchange (ODX). The two companies settled trades using a security token (ST) corporate bond issued by SBI VC Trade and a trust-type stablecoin issued by Mitsui Sumitomo Bank. They completed two settlements in which securities and cash were exchanged simultaneously across different blockchains.
The participating institutions also confirmed at this phase that a T+2 settlement cycle, in which settlement takes place within two days after the trade date, is possible.
Chi-gyu Hwang
delight@d-today.co.kr