Earlier this month, blockchain infrastructure Chain Inc. announced a partnership with Mitsubishi UFJ Financial Group (MUFG) – the largest financial group in Japan – to develop blockchain solutions for the financial industry in that country.
According to a corporate blog post published by Chain on April 8th, both parties have initiated their partnership by working on a blockchain proof of concept for Promissory Notes. The system simulates an environment in which businesses instantly and securely issue, transfer, sell and redeem Promissory Notes in a natively digital medium, with lower costs and fewer risks for counterparts compared to traditional means. The platform is designed to give companies the privacy and confidentiality they need, while also providing transparency to auditors and regulators.
MUFG is Chain’s first partner in Japan, said Adam Ludwin, the San Francisco-based company’s CEO, in the blog post. “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,” he said.
MUFG CIO Satoshi Murabayashi said in the post, “We are pleased to be working with Chain to explore the application of next-generation financial infrastructure that we believe could significantly enhance the experience for our clients.”
Beyond Promissory Notes, Chain and MUFG are examining other areas where blockchain technology could enhance payments and markets infrastructure in Japan, and are welcoming other institutions to these initiatives.
“Chain’s partnerships with financial institutions are strategic and long-term, as is our commitment to Japan,” said Ludwin in the blog post.
Among Chain’s partners is Nasdaq. Last June both parties got together to make digital ledger technology available to private firms that issue and transfer shares on the Nasdaq Private Market.
Nasdaq is also among a syndicate of prominent investors that raised $30 million in equity funding last September. The others include Capital One, Citi Ventures, Fiserv, Orange and Visa.
Chain’s technology was also part of five blockchains tested in a trial run by R3 CEV’s 40-member banks to issue, trade and redeem a fixed-income product.