Japan Home Loan Co., Ltd. Announces Results of Verification Experiment for New Identity Verification Method Using Digital Certificates
Japan Home Loan Co., Ltd. announces the results of a verification experiment for a new identity verification scheme utilizing digital certificates.
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- 📰 Published: April 1, 2026 at 02:10
Tokyo, Japan – Japan Home Loan Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; President and CEO: Naohiro Ando; hereinafter referred to as 'JHL') today announced the results of a verification experiment for a new identity verification scheme that utilizes digital certificates (Verifiable Credentials, hereinafter referred to as 'VC') to comply with the Act on Prevention of Transfer of Criminal Proceeds (hereinafter referred to as the 'Act'). This experiment was conducted under the 'Identity Verification Subcommittee' (established in June 2024) of the DID/VC Co-creation Consortium (Decentralized Identifier / Verifiable Credential Co-creation Consortium, with 50 member companies as of March 31, 2026; hereinafter referred to as 'DVCC'), hosted by Mitsubishi UFJ Trust and Banking Corporation (President: Hiroshi Kubota; hereinafter referred to as 'MUTB'). The experiment was supported by the Financial Services Agency's (FSA) 'FinTech Demonstration Experiment Hub' as project No. 9*¹.
1. Overview and Results of the Verification Experiment
(1) Overview of the Verification Experiment
This experiment aimed to verify the feasibility and effectiveness of a 'new identity verification method' that enhances security and convenience by enabling users to manage and present VCs on their smartphones, representing the results of identity verification conducted by financial institutions in accordance with the Act.
Two schemes were examined in this experiment:
① Utilizing VCs containing the results of identity verification by financial institutions, combined with VCs recording the results of reading IC chip information from identity documents such as My Number Cards, as a method defined in Article 6, Paragraph 1, Item 1 (g) of the Enforcement Regulations of the Act on Prevention of Transfer of Criminal Proceeds (as of March 2025) (hereinafter referred to as the 'Old g Method'). (Initial Scheme)
② Utilizing x.509 certificates issued by businesses certified under Article 4, Paragraph 1 of the Electronic Signatures Act, transferred in VC format, as a method defined in Article 6, Paragraph 1, Item 1 (w) of the Enforcement Regulations of the Act on Prevention of Transfer of Criminal Proceeds (as of March 2026) (hereinafter referred to as the 'w Method'). (Final Scheme)
(2) Results of the Verification Experiment
This experiment demonstrated the potential of a 'new identity verification method' that reduces the burden on customers during identity verification.
However, regarding the initial scheme (①), relevant government ministries responded that it could not be used as the Old g Method because it could not guarantee the user's existence at the time of VC presentation.
Regarding the final scheme (②), relevant government ministries responded that it could be used as the w Method, provided that financial institutions implement risk mitigation measures.
For detailed results, please refer to the attached report:
'DID/VC Co-creation Consortium [Financial Services Agency FinTech Demonstration Experiment Hub Results Report]'
https://www.tr.mufg.jp/houjin/dvcc/pdf/houkokusho.pdf
2. Future Challenges for Social Implementation of VC
Moving forward, we will clarify the division of responsibilities among businesses and organize detailed issues such as incentive design, including appropriate costs that Verifiers can bear based on business models and cost-effectiveness, to realize and promote the social adoption of VC for various use cases beyond just identity verification.
3. Future Developments
DVCC will continue to collaborate with relevant government ministries and private industry organizations to examine use cases for VC and promote its implementation and social adoption, while ensuring the legality and safety of new technologies.
*1: About the Financial Services Agency's FinTech Demonstration Experiment Hub
In 'The Basic Policy for the Promotion of the Japanese Economy 2017' (decided by the Cabinet on June 14, 2017), it was stated that the FSA would take measures to facilitate FinTech demonstration experiments from the perspective of accelerating innovation utilizing FinTech. Based on this, the FSA established the FinTech Demonstration Experiment Hub to provide support to overcome hesitations and concerns that FinTech companies and financial institutions may have when attempting unprecedented demonstration experiments.
Continuous support is provided by internal FSA teams formed for each experiment, addressing issues that FinTech companies and financial institutions wish to resolve through their experiments, such as compliance and supervisory risks, and practical challenges related to legal interpretations that may arise when providing services to general users.
'Regarding the Establishment of the FinTech Demonstration Experiment Hub'
https://www.fsa.go.jp/news/29/sonota/20170921/20170921.html
'Decision to Adopt the 'DID/VC Co-creation Consortium' for Digital Certificates: Reutilization of Transaction Confirmation Results Using Digital Certificates, Supported by the FSA's FinTech Demonstration Experiment Hub'
https://prtimes.jp/main/html/rd/p/000000009.000106779.html
Participating Companies in the Verification Experiment (in Japanese syllabary order, titles omitted)
The verification experiment was conducted primarily by DVCC member companies participating in the 'Identity Verification Subcommittee' and the 'Rule Development Subcommittee (Identity Verification WG)'.
Role | Participating Company Name |
|---|---|
DVCC Secretariat | 1. Mitsubishi UFJ Trust and Banking Corporation |
DVCC Administrative Office | 2. NTT DATA Corporation (Participated in both subcommittees below) 3. VESS Labs, Inc. (Participated in the Rule Development Subcommittee) |
Business Co-creation Subcommittee (Identity Verification Subcommittee) | 4. Orient Corporation 5. The San-in Godo Bank, Ltd. 6. Shizuoka Bank, Ltd. 7. The Joyo Bank, Ltd. 8. Seven Bank, Ltd. 9. Daiwa Securities Co., Ltd. 10. The Chiba Bank, Ltd. 11. TOPPAN Edge Inc. 12. Japan Home Loan Co., Ltd. 13. Nippon Life Insurance Company 14. Fukuoka Financial Group, Inc. 15. The Hokuriku Bank, Ltd. 16. Sumitomo Mitsui Financial Group, Inc. 17. Mizuho Financial Group, Inc. 18. Mitsubishi UFJ Financial Group, Inc. 19. The Bank of Yokohama, Ltd. 20. Resona Holdings, Inc. 21. Lawson Bank, Inc. |
Rule Development Subcommittee (Identity Verification WG) | 22. ITOCHU Techno-Solutions Corporation 23. Keychain LLC 24. xID Inc. 25. Global Legal Entity Identifier Foundation 26. Dai Nippon Printing Co., Ltd. 27. Digital Platformer Inc. 28. DataGateway Pte. Ltd. 29. TOPPAN Digital Inc. 30. TRUSTDOCK Inc. 31. NEC Corporation 32. Panasonic Connect Co., Ltd. 33. Hitachi, Ltd. 34. BIPROGY INC. 35. FUJITSU LIMITED 36. Company Name Withheld |
Legal Counsel | 37. Anderson Mori & Tomotsune |
External Experts | 38. NAT Consulting (Representative: Natsuhiko Sakimur |
Company Name: Japan Home Loan Co., Ltd. (Abbreviation: JHL)
President and CEO: Naohiro Ando
Established: May 2003
Contact for Inquiries: Japan Home Loan Co., Ltd., Public Relations Department ([email protected])
9F, Shinjuku Main's Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053
FAQ
What was the purpose of this verification experiment?
The purpose was to verify the feasibility and effectiveness of a new method for identity verification based on the Act on Prevention of Transfer of Criminal Proceeds using digital certificates (VC). This aimed to achieve both enhanced security and convenience.
What were the two schemes verified?
The first scheme involved combining VCs of identity verification results from financial institutions with VCs recording IC chip information from identity documents like My Number Cards, to be used as the 'Old g Method'. The second scheme involved transferring x.509 certificates issued by certified businesses in VC format, to be used as the 'w Method'.
As a result of the experiment, which scheme was deemed usable?
The 'Old g Method' was deemed unusable because it could not guarantee the user's existence at the time of presentation. The 'w Method' was deemed usable, provided that financial institutions implement risk mitigation measures.
What are the future challenges for the social implementation of VC?
It is necessary to clarify the division of responsibilities among businesses and organize detailed issues such as incentive design based on business models and cost-effectiveness.
What is the Financial Services Agency's 'FinTech Demonstration Experiment Hub'?
It is a measure established by the FSA to facilitate FinTech demonstration experiments, providing support to FinTech companies and financial institutions to overcome hesitations and concerns when conducting unprecedented experiments.