Sunday, March 24, 2019

Mitsubishi Financial Group to Launch New Blockchain-Based Payment System

One of the world’s largest bank Mitsubishi UFJ Financial Group (MUFG) has announced its decision to launch its first blockchain payment system after a recent partnership with Akamai Technologies.

Joining the Train

Mitsubishi UFJ Financial group joins a steadily growing list of elites and financial powerhouses that are fast turning to blockchain technology as a new secure method of increasing efficiency and speed.

The financial group is currently the fifth biggest of its ilk in the world by total assets recording a total asset of $2.5 trillion in 2016 alone, and revenue eclipsing JPY $4.5 trillion in 2013. Thus, making it one of the core members of the famous and long existing Mitsubishi Group across all industries.

MUFG has now finally announced their new initiative which is scheduled to be officially launched in the first quarter of 2020, through a mutual partnership with US-based Akamai Technologies. MUFG’s new partnership with Akamai would see the group leverage blockchain technology to create Global Open Network Inc. MUFG has long taken an interest in blockchain technology and has shown a track record of technological excellence over the past few years.

With fintech companies rapidly hogging the market and causing incumbent financial institutions to pay attention, the company showed its willingness to get in front of competition by establishing its Innovation Center in 2014. A year later, elite customers were first welcomed by MUFG’s humanoid genius robot (NAO) which stands at 0.6 meters and speaks more than 20 languages. NAO, who could read human emotions, became the group’s ultimate multilingual bank teller.

MUFG has gone a long way since then, and the group is now moving towards the aspect of Decentralized Ledger technologies and has chosen Akamai due to their track record of ‘world-class speed and security’ via their intelligent edge platform. The company’s statement read:

“We will strive to support diverse payment schemes that take IoT into account, to expand our payment network business globally and to further enhance our services.”

The Faster, the Better

MUFG claims the aftermath of the implementation of their initiative would see the development of a new system capable of processing more than a million transactions per second.

By creating an efficient, super-fast and user-friendly interface payment system which is built on blockchain technology, MUFG would see to its clients’ comforts and satisfaction.

According to the statement published on February 12, the new project would require a capital of $2.2 million, with MUFG having a stake of 80 percent while Akamai Technologies the rest.

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