Japanese Tech Conglomerate GMO Launches New Blockchain-based Banking Business

| Updated
by Sofiko Abeslamidze · 3 min read
Japanese Tech Conglomerate GMO Launches New Blockchain-based Banking Business
Photo: Dick Thomas Johnson / Flickr

GMO Internet Group leverages the robust blockchain technology to streamline an interbank settlement system and create “next-generation” banking services.

Being at the verge of blockchain revolution, Japanese fintech giant GMO Internet Inc. seems to be the one catching every single opportunity on their thorny path leading to a market dominance. Almost monthly, the company has been announcing new blockchain powered products and services available to the public, therefore it might be said GMO Internet Inc. is truly committed to blockchain while putting many efforts to the mass adoption of this cutting-edge technology.

Previously Coinspeaker reported the GMO’s mass-produce of a Bitcoin mining device based on 7nm chips branded B2. The new mining rig conceived to deliver a high-level hashing power with lower electricity consumption has received many credits from the cryptocurrency community. It also marked the next milestone for digital mining.

Further expansion into the cryptocurrency business brings to the market a mobile app “CryptoChips” that enables distribution of Bitcoin as remuneration within the game application. Notably GMO Internet Inc. has even embraced paying a portion of their staff pays lips in Bitcoin (BTC).

Over the first quarter of 2018, the Tokyo-headquartered internet services provider declared a 17.5 percent increase in net sales in comparison to a year before. The reported raise equals around $387.5 million in revenue.

Today the company puts their eye on a banking sector that some suggests is in dire need for the disrupting system of digital ledger the most. In the announcement made on Tuesday, GMO Internet Inc. confirmed its collaboration with Aozora Bank Group over a new web bank that it says will soon use blockchain to facilitate payments. Reportedly, the two firms had been preparing for the launch of the “next-generation” bank since mid-2016.

The newly introduced entity dubbed GMO Aozora Net Bank represents a joint venture of GMO Internet, GMO Financial Holdings and Aozora Bank. According to the project’s press release, GMO Aozora Net Bank aims to provide new financial services through the integration of fintech and IT, and to attain this goal it will leverage the list of most advanced technologies including security certificates, blockchains, artificial intelligence and Internet of Things.

In particular, GMO Aozora Net Bank stressed the further partnership with GMO Internet to develop a new settlement system utilizing blockchain technology, saying:

“Through the application of blockchain technology, there is an increasing expectation for breakthroughs for safer and cheaper payments and financial services.”

In the future, the new banking strategy will be open to GMO’s corporate and retail clients, tailoring core banking services such as deposits and exchange for e-commerce businesses, as well as offering products developed with partner securities firms.

GMO’s decision to harness blockchain technology at the center of their new internet-banking venture is in keeping with its significant prior investments in the crypto and blockchain space.

Blockchain News, Internet of Things News, News
Related Articles