The fifth largest bank in the world to launch a blockchain-based payment system

The fifth largest bank in the world to launch a blockchain-based payment system

How the blockchain is changing money and business | Don Tapscott

Japan’s largest financial group Mitsubishi UFJ has officially announced plans to launch a new blockchain-based payment system in the first quarter of 2020.

In creating a project called «Global open network», the fifth largest bank in the world is assisted by the fintech company Akamai Technologies. According to the developers, the future blockchain platform will be able to process more than 1 million transactions every second, as well as interact with the Internet of Things and cloud services. With the help of an innovative system, the financial group plans to expand its capabilities and strengthen its position in the new market.

The authorized capital of the joint venture is $ 250 million and the Japanese giant owns 80% of the company. The platform will include various payment services allowing the transfer of funds and asset management using the blockchain to reduce transaction costs.

For the first time, the partners announced the start of joint work in the spring of 2018. In addition to this project, MUFJ has been doing blockchain research with several European banks and technology company NTT, as well as was going to release its own cryptocurrency.

Similar plans were recently announced by another Japanese financial giant. IN March 2019, Mizuho Bank Holding of the Year plans to launch a virtual currency that will be used for remittances in its new payment system.

text: Ivan Malichenko, photo: st24invest, economic-definition

The fifth largest bank in the world to launch a blockchain-based payment system