MUFG builds blockchain proof of concept for promissory notes

Crazy Review : Blockchain startup Chain has reached a cooperation with Japan's Mitsubishi UFJ Financial Group to cooperate on multiple projects around blockchain technology; the first cooperation project is to study the blockchain proof of concept mechanism for promissory note transactions. Chain and MUFG will jointly develop a platform for digital promissory note transactions. The solution is designed to provide the privacy and confidentiality required by enterprises while meeting the transparency requirements of regulators and auditing agencies.

Translation: Annie Xu

Blockchain startup Chain has partnered with Japan’s MUFG (Bank of Tokyo-Mitsubishi UFJ) to develop a blockchain proof-of-concept for promissory note transactions.

A promissory note is an agreement where one party agrees to give another party a certain amount of assets at a specified time. Chain and MUFG will jointly develop a platform for digitizing promissory note transactions.

Chain described the collaboration in its blog post:

“The platform simulates a transaction environment where companies can issue, transfer, sell and redeem promissory notes instantly and securely using a native digital medium, reducing costs and risks for counterparties in traditional methods. The solution is designed to provide the privacy and confidentiality that companies require, while meeting the transparency requirements of regulators and auditors.”

As a global bank member participating in the R3CEV blockchain alliance project, MUFG has also been testing blockchain technology within the bank.

Past use cases include peer-to-peer transfers and foreign exchange.

Satoshi Murabayashi

Satoshi Murabayashi, Chief Information Officer of MUFG, said:

“We are very happy to work with Chain to explore the application of next-generation financial infrastructure, and we believe it will greatly improve the service experience of customers.”

Chain raised $30 million in Series A funding last summer from investors including major financial companies such as Capital One, Fiserv and Visa, and worked with global securities market operator Nasdaq to develop a private blockchain securities market platform called Linq. In the second half of last year, Chian used the Linq platform to issue shares to private investors.

Regarding the collaboration with MUFG, Chain noted that it will work with the financial group on multiple projects, and among the many projects, the focus is on issues related to “market infrastructure.”