MUFG could adopt blockchain payments by 2020

Tuesday 22 May 2018 10:13 CET | News

Mitsubishi UFJ Financial Group (MUFG), a large Japanese bank has developed a new blockchain to boost the speed and lower the cost of payments.

For this project, MUFG has partnered with Akamai, a US-based tech company, to design a blockchain that can handle 1 million transactions per second at latencies of less than 2 seconds, meaning the time it takes to confirm a batch of transactions on the ledger. Both companies expect the service to be capable of handling 10 million transactions per second as they continue to improve the technology, Fortune cited their representatives.

The blockchain network developed by MUFG and Akamai’s is “permissioned,” meaning that only verified computers can join the network that orders and confirms payments. The blockchain is built on Akamai’s cloud service, called Akamai Intelligent Platform, and the payment network application is expected to be launched in early 2020, the tech company said for Forbes.

In recent news, MUFG has been very active in the blockchain space. The bank is planning to test its own cryptocurrency by the end of 2018, has invested in Coinbase, a large US-based cryptocurrency exchange, and has worked on blockchain pilots and projects with IBM, financial industry consortium R3, and digital payments firm Ripple, among others.

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Keywords: MUFG, blockchain, payments, partnership, Akamai, innovation
Countries: World