In a press release published by MUFG and Akamami Technologies, the companies have announced that several major global banks have successfully completed a blockchain interledger, cross-border, payment pilot test. The payment network claims to have the capacity to process a million transactions per second and has a latency of 2 seconds per transaction. Using the Bank of Thailand’s regulatory sandbox, the pilot test was managed by Japan’s Mitsubishi UFJ Financial Group, or “MUFG”, and Standard Chartered Singapore.
MUFG has engaged in numerous research projects with Akamai, focusing on Akamai’s high-speed network and distributed computing technology.
As a result of the pilot test, the companies believe that under real world conditions, the platform will continue to strive. It will be able to processes a million transactions per second, with potential to scale up to 10 million transactions per second in the future. "This new blockchain-based online payment system, built upon our cloud platform, will be designed to address the concerns related to scalability, latency, and security that have to date hindered broader use of blockchain," Akamai co-founder and CEO Dr Tom Leighton said. “For years, the financial industry has sought to utilize blockchain to secure and hasten transaction processing, and lower associated costs,” Nobuyuki Hirano, president and group CEO of MUFG, said in a statement.
MUFG has been active in blockchain space, has been planning on launching its own cryptocurrency, and has also invested into Coinbase. With the success of its pilot test, the new payment network is expected to go live in Japan by the second half of 2020.