Japanese financial services giant MUFG is leading a new Security Token (ST) Research Consortium, working on infrastructure that enables automatic securities and fund settlement via blockchain technology.
As well as a host of its own subsidiaries, MUFG has signed up the likes of Accenture, WebMoney, KPMG and telco KDDI to the 22-strong consortium, which will share knowledge and carry out research designed to form the basis of the new blockchain-based financial transaction service.
MUFG says the service, called Progmat, will combine security token and smart contract technology to make it possible to do fundraising and management on one platform, managing a variety of financial products (such as bonds and securitised products) anytime, anywhere and with anyone.
Token issuance technology provider Securitize, in which MUFG invested recently, will provide the issuance platform.
The consortium stresses that that by combining blockchain infrastructure with a trust function, the service will minimise counterparty risk, a current problem for fundraising through tokenisation.