Japan To Welcome New Blockchain Payment Network From Mitsubishi UFJ Financial Group (MUFG)
Japan’s Largest Bank To Launch Blockchain Payment Network In 2020
The largest financial group of Japan, which is also the fifth largest bank by assets, Mitsubishi UFJ Financial Group (MUFG), has decided to enter the blockchain world now. The announcement was made yesterday, February 12, and the company has affirmed that it has also formed a joint venture with Akamai Technologies, which will develop the platform.
According to the official reports, this new platform will be out in the first half of 2020 and it will be called Global Open Network. The bank claims that this new system will be able to process over a million transactions per second, which will help the bank to make payments considerably faster.
The new payment network will be equipped with an interface that will include several functions that will make the lives of the clients easier and that can reduce the cost of transactions.
This project will have a capital of around $2.2 million USD and MUFG will have a stake of 80% on this project and Akamai will have the other 20%.
Both Companies Have Been Interested In The Blockchain For A Long Time Now
Akamai and MUFG have planned this announcement for a while now, but their involvement with the blockchain technology is older than that. Last May, Akamai already affirmed that the blockchain technology had several use cases and that it could provide a number of services for the payment industry.
MUFG has already been exploring the technology for a while now. The company already participated in a pilot that made a syndicated loan of $150 million USD using the blockchain technology together with other banks. Another enterprise involved the initiative to create a remittance corridor to Brazil using Ripple’s technology.
The company also wanted to create its own token back then, which did not happen in 2016 when the plans were started. However, now the company is interested in the idea again.