The cloud delivery platform Akamai and the financial group MUFG are developing a new blockchain-based online payment network. The technology is expected to come during the first half of 2020.
Akamai technologies, the world’s largest and most trusted cloud delivery platform, and Japan’s Mitsubishi UFJ Financial Group (MUFG) have partnered to launch a new blockchain-based online payment network which will enable next-generation payment transaction scale and responsiveness.
“For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing and lower associated costs,” said Nobuyuki Hirano, President and Group CEO of MUFG.
According to the press release, 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. 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.
The technology will be built and deployed on the Akamai Intelligent Platform. MUFG and Akamai will utilize the new blockchain’s high-speed processing and secure value transfer abilities to promote pay-per-use, micropayments, and other new IoT generation payment methods, and to support the diverse payment options of the sharing economy by offering an open platform.
“This new blockchain-based online payment system, built upon our cloud platform, will be designed to address the concerns related to scalability, latency, and security that have to date hindered broader use of blockchain,” Akamai co-founder and CEO Dr Tom Leighton said.
As the companies state, the underlying blockchain architecture is expected to conduct up to 10 million transactions per second.
“We have high expectations for our partnership with Akamai to provide customers the ability to support significantly greater volumes of high-speed payment transactions without compromising the level of security required for payment networks.”
The network is expected to be available in Japan during the first half of 2020.
Akamai is the global leader in Content Delivery Network (CDN) services and the most trusted cloud delivery platform, making the Internet fast, reliable and secure for its customers. The company’s advanced web performance, mobile performance, cloud security and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise and entertainment experiences for any device, anywhere.
Mitsubishi UFJ Financial Group (MUFG) is a Japanese financial services company headquartered in Chiyoda, Tokyo, Japan. Being the world’s fifth largest bank by total assets, the company offers comprehensive and tailored financial solutions to clients worldwide. In 2016, MUFG signed a deal with IBM to develop smart contracts and automate business transactions based on blockchain modelling. Recently, the bank announced the plans to launch its own cryptocurrency, the MUFG coin, by 2019.