Chain, a San Francisco-based provider of blockchain technology infrastructure to financial institutions, has announced its partnership with Mitsubishi UFJ Financial Group (MUFG), the largest financial group in Japan, in order to build blockchain solutions for Japan’s financial sector.

Chain raised $30 million in equity funding last year, drawing support from financial and payments industry leaders including Visa, Nasdaq, Citi Ventures. It envisions a smarter and more connected financial industry that reaches every person and device.

“We are pleased to be working with Chain to explore the application of next-generation financial infrastructure that we believe could significantly enhance the experience for our clients” said Mr. Satoshi Murabayashi, CIO, in charge of digital innovation, at Mitsubishi UFJ Financial Group.

Mitsubishi UFJ has been involved in blockchain research for quite some time. It joined the R3 blockchain consortium last year and is also participating in the Hyperledger project. In addition, MUFG is reported to have developed its own digital currency dubbed “MUFG coin” as part of its research into blockchain and distributed ledger technology.

To start with, Chain and MUFG have collaborated on a blockchain proof-of-concept for Promissory Notes. The platform simulates an environment where businesses instantly and securely issue, transfer, sell and redeem Promissory Notes in a natively digital medium, with lower costs and risks for counterparties over traditional methods. The solution aims to give businesses the privacy and confidentiality they require, while at the same time providing transparency to regulators and auditors.

“We are thrilled to be working with MUFG, our first partner in Japan” says Adam Ludwin, CEO of Chain. “The team at MUFG is innovating rapidly in the blockchain arena and it is our privilege to be supporting and powering their efforts with Chain’s platform.”

In addition, MUFG and Chain are exploring other areas where blockchain technology could improve payments and market infrastructure in Japan, and are including other institutions in these efforts.