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Mitsubishi UFJ Financial Group (MUFG), one of the largest banking institutions in Japan, is set to launch its high-speed blockchain payment network with US tech firm Akamai in 2021.
MUFG and Akamai aim to provide cheaper and more efficient payment services through their Global Open Network (GO-NET) joint venture. The network will integrate electronic device maker Seiko Holdings’ payment terminals with bank credit card company MUFG NICOS in February, CoinDesk Japan reported. GO-NET initially announced the launch of payment services in the first half of 2020.
The network also plans, in July next year, to launch a service that allows customers to purchase canned and bottled beverages from vending machines in Japan by placing a credit card on an automatic reader. GO-NET said its payment platform can process 100,000 transactions per second, which exceeds VISA’s processing capacity by around 70,000 per second. According to GO-NET, the platform can be expanded to reach 10 million transactions per second for small payments.
Founded in May 2018, GO-NET is a joint venture between MUFG and Akamai, with the bank holding 80% of the company’s stake. The collaboration between the two companies for the development of the payment platform began as early as 2016, according to CoinDesk Japan.
While MUFG can leverage its existing financial services to increase network adoption, Akamai helps GO-NET build its infrastructure with approximately 280,000 servers in 136 countries and blockchain technology that comes with a native wallet.
MUFG has been working on its own digital currency MUFG Coin for several years. It is unclear whether the blockchain payment network is related to the bank’s coin initiative.
GO-NET expects payment services to be fully functional across Japan by the summer of 2022.
