Japan’s Biggest Bank Launching Blockchain Payments Network in 2020

Japanese banking giant Mitsubishi UFJ Financial Group is launching a high-throughput blockchain-based payments network next year.

AccessTimeIconFeb 13, 2019 at 10:00 a.m. UTC
Updated Dec 12, 2022 at 12:42 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Mitsubishi UFJ Financial Group (MUFG) – Japan's largest financial group and the world's fifth largest bank by assets – is launching a blockchain-based payments network next year.

The firm announcedhttps://www.mufg.jp/english/vcms_lf/news/pressrelease-20190212-001-e.pdf Tuesday that it has formed a joint venture with U.S.-based fintech firm Akamai Technologies to develop the platform "by the first half of 2020."

Called the Global Open Network, the system will be capable of processing over a million transactions per second, MUFG claimed. The firms are also looking to integrate internet of things (IoT) and Akamai’s cloud computing platform into the network.

The new venture launches with capital of 250 million yen ($2.26 million), with MUFG having an 80 percent stake and Akamai the remaining 20 percent.

The planned network was initially announced back in May. At the time, Akamai said that the network will provide a number of services, including current payment processing, pay-per-use, micropayments and "other developing IoT-enabled payment transactions.”

Previously, MUFG has been exploring blockchain tech for several uses cases. Back in November, the firm participated in a pilot that put a syndicated loan for $150 million on the blockchain, along with Spanish banking giant BBVA and France’s BNP Paribas.

In December 2017, the group launched a blockchain proof-of-concept with tech firm NTT for improving cross-border trades. The firm was also looking to develop its own digital currency named MUFG coin as part of its research into blockchain back in 2016.

MUFG image via Shutterstock 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.