On November 6, 2019, Mitsubishi UFJ Financial Group (MUFG) announced to establish a blockchain-based research consortium on Security Token with Mitsubishi UFJ Trust, The Trust Bank Corporation, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS), and other 21 companies. The objective is to develop an infrastructure that allows securities and funds settlement automatically and helps in securing the rights of the investors by using the blockchain technology.
Recently, the Japanese-based MUFG is also looking for a patent in Japan to develop the infrastructure for managing the security tokens.
The partner companies researched various topics like arrangement/intermediation, funding/investment, and technical cooperation/settlement studies, etc., to introduce Security Research Consortium (SRC). The Trust bank managed the consortium committee and provided many services with the help of MUMSS and MUFG banks. These banks helped in gathering all the relevant information for developing the Service. They searched for the corporations and considered the requirement of product using the Service.
The company aims to provide fundraising and management on a single platform where they can manage many financial products like bonds, securitized commodities, etc., anytime and anywhere. The Service will be developed by the combination of the security tokens, external programmable money, and smart contract, which have an enormous scope in the future. This Service will help in allowing efficient financial transactions by their platform.
The company will protect the investors by creating a secure blockchain infrastructure to reduce the risk of the counterparty, and tokenization will sort the issue of fundraising. The system will save all the information about the existing bonds. The interest payments, as well as redemption, will also implement automatically. The security information will automatically update at the time of issue or any transfer of funds. SRC provides a chance to tokenize the fixed income assets, which is also known as bonds. The platform with the Service will bring a revolution in the financial system.