The largest Japanese bank, Mitsubishi UFJ Financial Group (MUFG), is shutting down its blockchain payment network project. The reason: poor performance and slow business growth.
According to the official announcement, MUFG stated that it had already begun modalities to suspend the Global Open Network Japan (GO-NET Japan) blockchain payment network.
GO-NET was established in 2019 by MUFG and US-based cloud service company Akamai Technologies. At the time, the blockchain payment rail was predicted to deliver 1 million transactions per second with a planned Internet of Things (IoT) integrations.
After three years in operation, MUFG says the next step will be to coordinate with all stakeholders involved to liquidate GO-NET and its subsidiary network.
MUFG stated that GO-NET Japan was unable to achieve the necessary network effect required to scale the business. Therefore, the Japanese banking giant concluded that the project will not be able to achieve tangible commercial success within a reasonable timeframe