Mitsubishi UFG Financial Group (NYSE:MUFG) recently announced that it has entered into a joint venture (JV) with Akamai Technologies (NASDAQ:AKAM) to form a new entity — the Global Open Network, Inc. (GO-NET). The companies plan to offer a new blockchain-based payment network through GO-NET.
The new payment network is expected to be made available in Japan in the first half of 2020. GO-NET will provide an extensive set of services, including support for existing payment-processing functions, micropayments, pay-per-use, and other developing IoT-enabled payment transactions.
"This joint venture with MUFG sets the stage for a new blockchain-based online payment system that can better serve customers' and partners' payment processing needs," said Dr. Tom Leighton, CEO and co-founder of Akamai Technologies.
MUFG will provide the know-how of financial services and expertise in business development to bring viable growth and success to the JV. Moreover, GO-NET will benefit from Akamai Technologies’ experience in building Blockchain as a service technology.
To power the online payment network, Akamai Technologies' globally distributed Intelligent Edge Platform will support its blockchain. Further, Akamai Technologies’ market-leading cloud security will secure transactions executed on the platform.
"Financial services need to embrace digital innovation to meet greater demands for security, capacity and efficiencies, and to serve evolving market and consumer needs," said Hironori Kamezawa, group CDTO of MUFG and CEO of GO-NET.
MUFG’s shares have lost 27.2% over the past year compared with the industry’s decline of 14.8%.
MUFG currently carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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