Japan’s Largest Bank To Launch Blockchain Payments System By 2020

Wilfred Michael 

Wilfred Michael

Reporter

13 February 2019,
21:39
Japan’s Largest Bank To Launch Blockchain Payments System By 2020

Mitsubishi UFJ Financial Group (MUFG), the fifth largest bank in the world by assets and Japan’s most prominent financial group wants to have a taste of blockchain technology.

As per a February 12 press release, the banking mogul has partnered with the U.S based, Akamai Technologies in a joint venture to launch a blockchain-based payment system in the first half of 2020.

Details of Mitsubishi UFJ Proposed Blockchain Payments System

  • The proposed system is called the Global Open Network, while its venture firm is named Global Open Network, Inc with its headquarters in Tokyo.

  • The firm will kick off with a capital of 250 million yen (approximately $2.26 million) where Mitsubishi UFJ owns 80% of shares while Akamai owns 20%.

  • Aside from blockchain technology, the new payments system will utilize the Internet of Things (IoT) as well as Akamai’s cloud computing technology.

  • The new payments system should be capable of processing millions of transactions per second when it goes live in the first half of 2020.

  • The blockchain-based system will exist as an open payment network first in Japan before being rolled out to other locations.

With the last three months, the proposed highly efficient payment system will be MUFG’s second attempt at exploring new use cases for blockchain technology.

We reported in November that the financial giants took part in a pilot that saw a $150 million syndicated loan delivered through the Ethereum blockchain.

In that deal, Spanish Bank BBVA, French banking group BNP Paribas, and Japan’s Mitsubishi UFJ Financial Group (MUFG) served as the syndicate and provided a loan to electricity grid company, Red Eléctrica Corporación.

More recently, Russia based cargo and shipping company, Infotech Baltika, announced plans to integrate blockchain technology within its port operations. The goal for them is to improve transparency and reduce the time spent on managing shipments.

 

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