Japanese Bank MUFG Invests in Groovenauts

Japan’s MUFG Bank has invested in Groovenauts, a Japanese startup specializing in quantum computer technology. The bank intends to use quantum computing to improve operational efficiency in complex financial services, including derivatives trading and asset risk management.

Groovenauts uses quantum annealing techniques to sort through numerous combinations of variables to find the optimal solution. The startup serves as a link between businesses interested in using quantum computers that research institutions own.

MUFG Bank has acquired around 18% of the issued shares of Groovenauts in a multi-billion yen transaction to advance AI and quantum technology. This venture is the first direct investment in a quantum computing startup by any of Japan’s three largest banks. MUFG Bank’s strategic partnership with Groovenauts makes the latter an equity-method affiliate of the bank.

MUFG Bank and Groovenauts will work together to strengthen their online human resource capabilities and advance risk management in credit portfolios and market portfolios. The collaboration seeks to optimize asset-liability management, improve reputation risk and operational risk analysis, and increase the effectiveness of administrative tasks and operations.  

The partnership will use Magellan Block, Groovenauts’ cloud platform that offers access to AI and quantum computing technologies. Its functions include data integration and analysis for decision-making, AI-driven prediction and classification and optimization using quantum computers. Users can combine these blocks to operate systems, facilitate technology adoption, streamline system development and improve verification processes.  

Related:IBM, Truist Team for Quantum in Banking