JV including Toppan wins subsidy for PoC to use vLEIs for exporter KYB

Osaka Prefecture has thrown its support behind a proof-of-concept for a KYB system using blockchain technology and verifiable Legal Entity Identifiers (vLEIs) from a joint venture including Toppan Inc. The PoC will be subsidized based on the selection of a proposal from the JV, known as SBI XDC Network APAC Ltd.

Toppan is working with SBI Holdings, TradeFinex Tech and Ginco on the “KYB Scheme Utilizing Digital Corporate Certificates and Achieving Greater Efficiency through the On-Chain Execution of Export Factoring Transactions.” The “Global Financial City Osaka Team” within the prefecture government runs the subsidy program.

Toppan Edge was certified as a vLEI issuer by GLEIF a year ago, the first entity in Japan to receive the designation.

The PoC involves digital and automated documentation for overseas trading of used automobiles and vehicle parts to support more efficient factoring transactions.

Factoring is a finance method in which exporters can receive credit for receivables so they can proceed to their next transaction without waiting for the payment to arrive in their accounts. It requires the financier to verify trade transaction data, the importer and the exporter.

That traditionally means scanning physical documents. With the implementation of the vLEI digitally verifiable organization credentials, administered by GLEIF, businesses can instead submit their data as verifiable credentials (VCs) to automate and speed up the KYB process.

The JV will develop a system for sharing Toppan-issued vLEIs and transaction data, aggregating and recording the data for a factoring transaction on a blockchain. If successful, the end result will be a seamless end-to-end process from customer inquiries through KYB processes to payment collection.

Article Topics

blockchain  |  digital ID  |  GLEIF  |  Japan  |  KYB  |  Legal Entity Identifier (LEI)  |  Toppan  |  Toppan Edge