MUFG Building Blockchain Proof-of-Concept for Promissory Notes
Blockchain startup Chain has inked a new deal with Bank of Tokyo-Mitsubishi UFJ (MUFG).
Blockchain startup Chain has inked a new deal with Bank of Tokyo-Mitsubishi UFJ (MUFG), a partnership that will initially see the two firms working on a blockchain proof-of-concept focused on the exchange of promissory notes.
A promissory note is an agreement under which one party promises to pay another at a certain date and time (or on demand) at a specified price. Chain and MUFG will work on a platform for the digitized exchange of promissory notes
Chain said in a blog post detailing the partnership:
MUFG, one of a number of global banks working as part of the R3CEV-led blockchain consortium, has been conducting internal tests of the technology for some time.
Past uses cases include peer-to-peer transfer and remittances.
“We are pleased to be working with Chain to explore the application of next-generation financial infrastructure that we believe could significantly enhance the experience for our clients," Satoshi Murabayashi, MUFG’s CIO for digital, said in a statement.
Chain raised $30m in a Series A round last fall from a number of major financial including Capital One, Fiserv and Visa, and has developed a private blockchain securities market platform, dubbed Linq, in partnership with global stock market operator Nasdaq. The firm used Linq late last year to issue shares to a private investor.
In announcing the MUFG partnership, Chain suggested that it could work with the financial group on similar projects, indicating that it would focus on issues related to “market infrastructure”, in addition to other areas.
Image Credit: TK Kurikawa / Shutterstock.com
Disclaimer: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Chain.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
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.