Logistics tech Yojee has today announced a service agreement with US delivery giant UPS to test its blockchain technology in the Asian supply chain environment.

UPS is the world’s biggest courier service with a market cap of $US95 billion.

Yojee — one of the ASX’s favourite blockchain stocks — jumped to 23c Friday morning before closing at 21c — up 11 per cent. The shares hit a 12-month high of 36c in January.

Blockchain technology, which provides an encrypted, public ledger of transactions, is best known as the basis of cryptocurrencies such as bitcoin. But it has many other potential applications such as enforcing digital contracts, securing public records or even regulating online voting.

While there will be no revenue from the pilot, Yojee (ASX:YOJ) said the trial highlighted global interest in blockchain for logistics.

Yojee (YOJ) share price movements over the past three months.
Yojee (YOJ) share price movements over the past three months.

Yojee’s foray into blockchain is relatively recent. Yojee is integrating he technology into its machine learning “software-as-a-service” application for logistics clients.

Customers can choose whether to use the new backend system or stick with its main product only – by many of Yojee’s bigger customers signed up so they could get access to the blockchain back office.

“Deploying technology-enabled operations for maximum efficiencies remains a priority for UPS,” said UPS Asia Pacific vice president Rob Houck.

“We look forward to working with Yojee to identify the application of new technologies to our business.”

The pilot is expected to go ahead early next month.

Yojee managing director Ed Clarke told Stockhead the addition of the distributed ledger technology secured company information and added value to Yojee’s initial offering.

“The way that we are using blockchain initially is to enable immutability, so you can’t mute any historical occurrences that happens in your database and in your company.

“That means you’re much less susceptible to hacking and information alteration.”

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