A coalition of Japanese and Singaporean firms announced plans this week to overhaul international money transfers, promising to eliminate the multi-day delays that plague cross-border payments with the help of blockchain-based digital currencies.
SBI Shinsei Bank has partnered with Singapore’s Partior and Tokyo-based DeCurret DCP to develop a system that converts traditional bank deposits into digital tokens, enabling instant settlement across multiple currencies around the clock.
Addressing a Mammoth Problem
The global cross-border payments market processes trillions of dollars annually, yet most international transfers still take two to five business days to complete. This inefficiency stems from the banking system, where payments pass through multiple intermediary banks for verification and compliance checks.
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Each intermediary adds processing time and fees, creating a cascade of delays that can leave businesses and consumers waiting for days for payments to clear. The problem becomes more acute during weekends and holidays when traditional banking networks shut down.
Blockchain Solution Gains Traction
To fix these problems, the new partnership will use tokenized deposits — digital versions of regular bank accounts that work on blockchain. Unlike usual transfers that need several bank approvals, tokenized payments happen instantly.
Partior’s multi-currency platform already handles transactions for major global banks, including J P Morgan, Deutsche Bank, DBS, and Standard Chartered across U.S. dollars, Euros, and Singapore dollars. Adding Japanese yen expands the network’s reach into Asia’s second-largest economy.
DeCurret DCP operates the DCJPY platform, which enables Japanese banks to issue yen-denominated digital deposits.
SBI Shinsei Bank plans to extend this capability to other major currencies, serving its extensive corporate client base with faster international payment options.
Commercial Implementation Ahead
The three partners will finalize operational frameworks and regulatory compliance procedures before launching commercial services. Success could establish a new benchmark for international payments, potentially displacing traditional correspondent banking relationships that have dominated global finance for decades.
This development positions Japan at the forefront of financial technology innovation, as banks worldwide watch to see whether blockchain-based payments can deliver on their promise to revolutionize global money movement.
Market Forces Drive Innovation
The initiative reflects mounting pressure on Japanese banks to modernize aging payment infrastructure, especially as corporate clients increasingly demand faster settlement times.
Japan’s regulatory environment supports this digital transformation while maintaining strict oversight standards. The Financial Services Agency has encouraged blockchain experimentation in payments, creating favourable conditions for innovation.
Several major Japanese institutions are exploring similar digital payment solutions, indicating industry-wide momentum toward adopting blockchain technology for cross-border transactions.
The success of this shift could set a global example, inspiring other countries to follow suit in modernizing their payment systems.
