Japan’s largest bank MUFG and Chain develop blockchain promissory note proof of concept

Blockchain startup Chain has signed a new agreement with Bank of Tokyo-Mitsubishi UFJ (MUFG) that will see the two companies focus on developing a blockchain-based promissory note trading system.

A promissory note is an agreement, a written promise issued by one person to another, guaranteeing that he will unconditionally pay a certain amount to a specific person or his designated person on an agreed date or when he sees the note. Chain and Bank of Tokyo-Mitsubishi UFJ will work together to develop a digital promissory note exchange.

Chain detailed the collaboration in a blog post:

“The platform simulates an environment that enables companies to instantly and securely issue, transfer, sell or redeem promissory notes in a native digital medium, with lower transaction costs and counterparty risk than traditional transaction methods. The solution is designed to provide companies with the privacy and confidentiality they need, while providing transparency to regulators and auditors.”

Bank of Tokyo-Mitsubishi UFJ, one of the largest banks participating in the global blockchain alliance led by R3CEV, has been conducting internal tests of blockchain technology in recent times.

“We are excited to be working with Chain to explore the next generation of financial infrastructure applications, which we believe can significantly enhance the user experience for our customers,” said Satoshi Murabayashi, MUFG Digital CIO, in a statement.

Chain, which raised $30 million last fall from major financial institutions including Capital One, Fiserv and Visa, has developed a proprietary blockchain securities platform, Linq, in conjunction with global stock market operator Nasdaq. The company also issued shares to private investors through the Linq platform late last year.

In announcing the partnership, Chain said it could work with financial groups on similar projects.

Original text: http://www.coindesk.com/chain-mufg-blockchain-promissory-notes/
By Stan Higgins
Translation: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/chain-mufg-blockchain)