NEC Corporation and DFNS have reached a memorandum of understanding to consider a new management platform aimed at the secure custody and operation of cryptoassets for Japanese banks. The concept calls for wallets, key management, governance and transaction orchestration to be integrated within domestic infrastructure.
NEC Corporation (NEC) and DFNS, which provides infrastructure for institutional investors, have entered into a memorandum of understanding concerning digital-asset custody for Japanese financial institutions. The scope includes a custody system and measures to address connectivity with existing systems, with an emphasis on compatibility with domestic core banking, back-office and risk-management functions.
DFNS's platform is envisaged as an integrated configuration centred on signing components, incorporating wallet orchestration, policy and governance management, transaction management and key management. This would enable the domestic custody of keys, data and operations in line with Japanese regulations, and the parties will consider deployment models premised on operation within infrastructure located in Japan.
Deployment models will range from SaaS to hybrid configurations with signing components located in domestic data centres, the customer's own private cloud and fully on-premises environments, including air-gapped configurations. The scope is expected to extend beyond signing functions to the overall operation of wallets, data management and transactions.
The two companies will assess and verify governance frameworks for individual Japanese financial institutions, taking Japanese laws and regulations and reliability requirements into account. They will also consider supporting digital assets more broadly, including digital securities, with the aim of promoting the sound adoption of digital assets and the development of financial services in the Japanese market.