Fifth Largest Bank To Launch Payment System On Blockchain
The Japanese holding Mitsubishi UFJ Financial Group (MUFG) is going to launch a payment system based on distributed ledger technology, according to a press release.
The new project called Global Open Network will be developed together with an American fintech firm Akamai. The latter is known as the largest provider of reliable cloud services. MUFG and Akamai will receive 80% and 20% stake in the joint venture, respectively.
It is expected that the open payment system will be available in Japan in the first two quarters of 2020. The companies will develop their own blockchain technology capable of processing more than a million transactions per second, the report said. The system will use various payment algorithms and interact with IoT devices.
The partners will invest more than $2 million in the project and hope to enter the international market in the future. It should be noted that MUFG controls assets worth $2.5 billion and is considered the fifth largest bank in the world, according to S&P Global Market Intelligence.
The companies reported on the Global Open Network development last year but failed to launch the project on the pre-set dates in 2018. As noted in the description of the blockchain system, it will be a diverse payment system with an interface that can be used for communication, as well as sending and managing assets.
In early February, the Japanese SBI Holdings admitted the potential of Ripple's xRapid blockchain system for fund transfers abroad. In 2019, the company plans to improve its S Coin, a platform for creating cryptocurrency, using the advantages of the Ripple and Corda blockchains.
Previously, an IT company Fujitsu used blockchain to redistribute electricity.