MUFG and Akamai to Launch High-Speed Blockchain Payment Network in 2021

MUFG and Akamai to Launch High-Speed Blockchain Payment Network in 2021 

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking institution, is poised to revolutionize the payment industry with the launch of its high-speed blockchain-based payment network in collaboration with U.S.-based tech giant Akamai. Set to go live in 2021, this innovative venture, known as Global Open Network (GO-NET), aims to deliver cheaper, faster, and highly scalable payment services to customers worldwide.

What is GO-NET?

Founded in 2018, GO-NET is a joint venture between MUFG and Akamai, with MUFG holding an 80% stake. The collaboration leverages MUFG’s financial expertise and Akamai’s cutting-edge technology infrastructure, which includes over 280,000 servers across 136 countries.

The GO-NET blockchain platform is designed to integrate seamlessly into various payment ecosystems, offering speed, efficiency, and scalability. Capable of processing 100,000 transactions per second (TPS)—surpassing VISA’s 70,000 TPS—GO-NET’s capacity can potentially expand to handle up to 10 million TPS, making it ideal for microtransactions and small payments.

Key Features and Launch Details

GO-NET’s launch in 2021 will introduce several groundbreaking features, including:

1. Integration with Payment Terminals
   GO-NET will incorporate payment terminals developed by Seiko Holdings alongside MUFG NICOS, MUFG’s credit card company. This integration is set to begin in February 2021, allowing streamlined transactions across Japan.

2. Vending Machine Payments
   By July 2021, customers will be able to make purchases at select vending machines in Japan by simply placing their credit cards on a machine reader. This contactless payment innovation aligns with Japan’s growing preference for cashless transactions.

3. High-Speed Transactions
   With the ability to handle 100,000 TPS and scalability to millions, GO-NET’s blockchain technology ensures unmatched transaction speeds for both large-scale and small-scale payments.

4. Blockchain-Based Wallet
   The platform incorporates a native wallet for secure and efficient transaction management, developed using Akamai’s advanced blockchain technology.

Why GO-NET Stands Out

GO-NET’s innovative features set it apart in the competitive payment services market:

• Cost-Effectiveness: By utilizing blockchain technology, GO-NET reduces operational costs, providing a cheaper alternative to traditional payment networks.
• Scalability: Its ability to scale to 10 million TPS makes it a robust solution for high-volume microtransactions, a growing segment in the global economy.
• Partnership Synergy: MUFG’s financial infrastructure and Akamai’s technological prowess form a powerful alliance capable of driving mass adoption.

A Step Toward MUFG’s Digital Transformation

GO-NET is part of MUFG’s broader strategy to embrace digital innovation. The bank has been working on its proprietary digital currency, MUFG Coin, for several years. While it remains unclear if GO-NET will integrate MUFG Coin, the payment network’s blockchain foundation aligns with MUFG’s vision of digital transformation in the financial sector.

This partnership also marks MUFG’s ambition to compete with global payment giants by introducing cutting-edge solutions that exceed current capabilities, such as those offered by VISA.

Akamai’s Role in the Partnership

Akamai’s contribution to GO-NET lies in its extensive infrastructure and blockchain expertise. The company’s network of 280,000 servers ensures secure, low-latency transactions, while its blockchain technology powers GO-NET’s native wallet and scalability.

This synergy allows GO-NET to offer unparalleled transaction speeds and reliability, critical factors for gaining trust and adoption among businesses and consumers.

Full Rollout by 2022

GO-NET’s payment services are expected to be fully operational across Japan by the summer of 2022. As the network integrates with vending machines, payment terminals, and other platforms, it is likely to reshape the way payments are processed in Japan and beyond.

Conclusion

MUFG and Akamai’s GO-NET initiative represents a significant leap forward in blockchain-based payment solutions. With its unmatched speed, scalability, and cost-efficiency, the platform is well-positioned to disrupt traditional payment networks and redefine customer expectations.

As GO-NET prepares for its 2021 launch, its integration with Seiko Holdings and MUFG NICOS, alongside innovations like vending machine payments, signals the dawn of a new era for digital transactions.

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