Blockchain

5th Largest Bank of the World Plans to Debut Blockchain Payment Network in 2020

There have been few industries that have felt the effects of the blockchain technology, more so than others and the banking industry is one of them. Which is understandable as the technology did came about as a part of advancement in the currency. And till now several banks have jumped on the blockchain scene including the fifth largest bank of the world.

According to a press release published on Feb. 12, Japan’s Mitsubishi UFJ Financial Group (MUFG), which also happens to be the world’s fifth largest bank, has made the official announcement to launch a new payment system powered by the blockchain tech, in the coming year.

The MUFG is working on this blockchain project in partnership with the United States-based content delivery network, Akamai. Their aim is to launch the new payment network in H1 of 2020.

The project dubbed the “Global Open Network” will be making use of MUFG’s payment industry reach in order to cement its place in the rapidly increasing blockchain payments market.

The new payment network will be a diverse payment service equipped with an interface that can be used as a communications network, and including functions for the transfer and management of value through blockchain

Read the press release.

The two firms made their alliance public back in May last year, when they issued an outline of the upcoming Global Open Network. The issue also had set the launch date of the project in the start of 2018 fiscal year, which couldn’t be realized.

Now with the new announcement the launch date has been taken to 2020. The press release further added,

This will allow for a significant reduction of transaction costs for all kinds of payment services, and could support a large expansion in transaction numbers.

In recent months MUFG has been involved in several blockchain related endeavors, among which was an initiative to develop a remittance corridor with Brazil using Ripple (XRP). Furthermore, there are certain rumors going around that the bank will begin trialling its own cryptocurrency in 2019.

Lets see if those rumors materialize later this year. For further updates stay tuned to BlockPublisher.

Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

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