Mitsubishi UFJ Financial Group (MUFG) is collaborating with blockchain infrastructure outfit Chain on a proof-of-concept test for the application of distributed ledger technology in the issuance and transfer of Promissory Notes.
The platform simulates an environment where businesses instantly and securely issue, transfer, sell and redeem Promissory Notes in a natively digital medium. The PoC is expected to demonstrate improvements in client privacy and confidentiality, while at the same time providing transparency to regulators and auditors.
“We are thrilled to be working with MUFG, our first partner in Japan” says Adam Ludwin, CEO of Chain. “The team at MUFG is innovating rapidly in the blockchain arena and it is our privilege to be supporting and powering their efforts with Chain’s platform.”
MUFG, which is one of 42 bank member of the R3 blockchain consortium, has been actively experimenting with the application of distributed ledger technology across a wide range of potential use cases. In Feburary, the bank released details of an initiative to create its own digital currency 'MUFG Coin' that can be used for things like international remittances via a smartphone application.
In addition to Promissory Notes, Ludwin says MUFG and Chain are exploring other areas where blockchain technology could improve payments and market infrastructure in Japan, and are including other institutions in these efforts.
“Chain’s partnerships with financial institutions are strategic and long-term, as is our commitment to Japan” he says.
Chain picked up $30 million in funding last year with participation from Capital One, Fiserv, and Visa, and has provided the backbone architecture for Linq, the blockchain-based private trading platform under development at Nasdaq.