MUFG Building Blockchain Proof-of-Concept for Promissory Notes

Blockchain startup Chain has inked a new deal with Bank of Tokyo-Mitsubishi UFJ (MUFG).

AccessTimeIconApr 11, 2016 at 9:31 p.m. UTC
Updated Sep 11, 2021 at 12:13 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

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:

"The platform simulates an environment where businesses instantly and securely issue, transfer, sell and redeem promissory notes in a natively digital medium, with lower costs and risks for counterparties over traditional methods. The solution is designed to give businesses the privacy and confidentiality they require, while at the same time providing transparency to regulators and auditors."

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.

Disclaimer: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Chain.


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; 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 to register and buy your pass now.