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Mitsubishi UFJ to Float Digital Wallet as It Looks to Unwind Its GO-NET Services

UTC by Benjamin Godfrey · 3 min read
Mitsubishi UFJ to Float Digital Wallet as It Looks to Unwind Its GO-NET Services
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The GO NET services are cumbered with the slow pace of integration of the service, designed to offer high scalability and multi-connectivity data processing in response to the rise of IoT.

Japanese financial powerhouse Mitsubishi UFJ Financial Group Inc (TYO: 8306) has announced its plans to start developing a digital wallet that will be capable of storing securities tokens as well as “blockchain-powered digital assets” and Non-Fungible Tokens (NFTs). As announced by the Tokyo-based firm, the new project was conceived by one of its subsidiaries, the Mitsubishi UFJ Trust and Banking Corporation, and the wallet will be christened the ProgmatUT.

On track to permit users to store a wide range of digital assets, the PromatUT wallet is designed to be hinged on a new blockchain protocol with ongoing plans to issue a stablecoin that will be the “first asset-backed security token in Japan.”

In addition to the new wallet that will be debuted, the stablecoin Mitsubishi UFJ plans to float is called the Progmat Coin. The emergence of the coin is billed to be accompanied by a series of public offerings as well as a push into the secondary market as early as 2023. Enlisted partners for these new product suites from Mitsubishi UFJ include Kenedix, one of Japan’s top real estate firms, securities firm, SBI, and Nomura, the duo acknowledged to have been working on the plan with Mitsubishi UFJ for quite some time now.

Mitsubishi UFJ to Unwind GO-NET Japan Services

The creation of the “Progmat” products is perhaps on schedule to be favored with the unwinding or suspension of the services and existence of its Global Open Network Japan, Inc (GO-NET Japan). As contained in a press release shared by the company, the GO NET services are cumbered with the slow pace of integration of the service, designed to offer high scalability and multi-connectivity data processing in response to the rise of IoT.

The GO NET initiative from Mitsubishi UFJ was created in partnership with Akamai Technologies back in April 2019. The suspension appears as the only economically strategic move as the firm said it is not expecting the service to be profitable any time in the near future.

“ In addition, in the IoT business, which GO-NET Japan had planned to expand in future, it struggled to find a fit to the growing market needs with its high scalability and multi-connectivity data processing blockchain, and commercialization of the product is expected to take longer than anticipated. As a result, the business is not expected to be able to achieve profitability in a reasonable timeframe, and it was concluded that it would be desirable to suspend its operations,” the company said in the announcement.

The process of liquidating the GO NET business was made after due consultations with partners and the closure is not going to affect its financial performance for this current fiscal year. According to Mitsubishi UFJ, other workable avenues to do business with Akamai Technologies will be explored in the near future in order to “drive momentum in open innovation through alliances with global business partners and by utilizing the latest technologies based on experience from the GO-NET project.”

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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