E-commerce giant acquires Bitnet and creates blockchain lab to develop blockchain applications in financial technology and e-commerce

E-commerce giant Rakuten has acquired the IP assets of the Bitnet payment platform and opened a blockchain lab in Belfast, UK.

Rakuten Blockchain Lab (RBL) will serve as a research and development organization dedicated to blockchain technology and its financial technology (Fintech) and e-commerce applications. Rakuten invested in blockchain digital payment platform Bitnet Technology Co., Ltd. in 2014.

As CCN reported, Rakuten began accepting Bitcoin payments last year. Rakuten, similar to Amazon, offers its services as a platform for merchants, all of which are able to accept Bitcoin payments through a partnership with Bitnet.

Bitnet veteran to run lab

Bitnet CTO Stephen McNamara and VP of Engineering Fergal Downey will oversee the day-to-day operations of RBL, which will serve as an ecosystem services organization within Rakuten’s technology division and will be led by Rakuten CEO Fernando Paulo.

Yasufumi Hirai, head of Rakuten’s technology division, said:

“By leveraging Bitnet’s significant IP assets and its deep engineering expertise and combining them with Rakuten’s financial technology and innovative solutions, this new lab will be our first step in unlocking blockchain’s potential to transform the way financial and e-commerce transactions are conducted.”

Focus: FinTech and e-commerce

Fergal Downey, Vice President of Engineering at Bitnet, said:

“We are delighted that Rakuten has chosen Belfast to open its new blockchain lab. There are many opportunities for blockchain technology at Rakuten and the newly created lab will help deliver new and innovative solutions.”

Rakuten’s involvement in payments, banking, insurance and digital services positions the company as a financial technology leader. McNamara noted in a Rakuten blog:

“We look forward to exploring and creating many new and interesting applications of blockchain technology for Rakuten and its customers.”

Downey noted that Bitnet has a strong engineering community in Belfast, which the lab will be able to benefit from.

Lotte seeks to play pioneering role

Hirai, the head of Rakuten’s technology division, said blockchain technology could revolutionize financial and e-commerce transactions. He said:

“We want to not only be prepared for this change, but also take the lead in making it happen.”

Rakuten CEO Paulo said there are no plans for specific applications yet. The idea is to use this lab for experiments.

Oskar Miel, managing partner of Rakuten Financial Technology Fund, which led the majority of Rakuten’s investment in Bitnet in 2014, said:

“Rakuten is well known in Japan for its financial technology leadership, and the launch of this new lab is an excellent opportunity to increase our internal blockchain capabilities.”