Mitsubishi UFJ Financial Group (MUFG), which is the largest financial group in Japan and the fifth largest bank in the world, is set to launch a blockchain-based payment network by next year. The company announced on Tuesday, February 12, that it has partnered with US-based fintech firm Akamai Technologies to develop the platform which would be ready by the first half of 2020.
The blockchain-based payment system called Global Open Network will have the capacity to process over a million transactions per second. According to MUFG, the system will make use of their presence in payment business and Akamai’s intelligent edge platform, which will offer speed and security to the system.
The companies are also working to integrate the Internet of Things (IoT) and Akamai’s cloud computing platform into the network to further boost their services. The new joint venture will have an initial capital of 250 million yen (2.26 million USD), with MUFG controlling 80 percent of the venture while Akamai takes the remaining 20 percent.
The payments network was announced by Akamai in May 2018. At that time, the company indicated that the system would provide numerous services such as on-going payment processing, pay-per-use payments, micropayments, and IoT-enabled payment transactions.
MUFG has been involved in the crypto and blockchain business over the past few months. In 2018, there were reports that the bank launched its own cryptocurrency, the MUFG coin, and is set to carry out an in-house experiment of the cryptocurrency this year.
In November, MUFG along with Spanish bank giant BBVA and French BNP Paribas, participated in a pilot program in which a 150 million USD syndicated loan was added to the blockchain. In December 2017, the financial group also launched a blockchain proof-of-concept with tech company NTT Data to improve cross-border trade.
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