Mitsubishi UFJ Financial Group (MUFG) Discontinues Blockchain-based Project

Mitsubishi UFJ Financial Group (MUFG) Discontinues Blockchain-based Project

  • The project was announced in February 2019, with MUFG teaming forces with Akamai.
  • MUFG has also been working on a platform for managing security tokens.

According to CoinMarketCap, the global crypto market cap is $1.75T, way below the $2T threshold, as the sector faces a severe downtrend. Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial conglomerate, will discontinue its three-year-old blockchain payment project in order to devote more resources to other digital and fintech efforts.

MUFG formally suspended a blockchain-based project aimed at high scalability and multi-connectivity data processing on Tuesday, the company reported. The project was launched “in response to the rise of the internet of things.”

Slow Growth of Payment Transaction Numbers

The project was initially announced in February 2019, with MUFG teaming forces with Akamai, a content delivery network based in the United States, to develop a payment service that would include numerous tasks such as communication and “management of value through blockchain.” The initiative was announced for the first time in May 2018.

As recently announced, MUFG will cease the GO-Net Japan project because of to “slow growth of payment transaction numbers caused by the impact of the COVID-19” and other circumstances that have made it difficult to expand on the scale that was once anticipated. According to the release, the business does not anticipate that the closure would majorly impact MUFG’s financial performance for the current fiscal year.

MUFG has also been working on a platform for managing security tokens for some years, which the ST Research Consortium has created. A stablecoin platform for the production and administration of stablecoins is being developed, launched in 2019 and renamed Progmat Coin in February 2022.

The post has appeared first on thenewscrypto.com

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