Mitsubishi UFJ Financial Group (MUFG), a financial giant in Japan, remains reticent about the initial banking institutions that will adopt its innovative stablecoin issuance platform. Meanwhile, several banks are purportedly opting for an alternative stablecoin solution.
MUFG’s Progmat Coin: A Breakthrough Stablecoin Platform
In a groundbreaking move, MUFG, one of Japan’s largest banks, introduced its unique stablecoin issuance platform, “Progmat Coin”. This platform is set to become instrumental for banks across Japan in launching Japanese yen-pegged stablecoins on multiple public blockchains.
Several Japanese banks have recently expressed their plans to investigate or launch stablecoins in response to fresh regulations enacted this month.
Regulatory Changes in Japan’s Crypto Landscape
The Japanese government took a pivotal step in mid-2022 by passing a bill that outlawed the issuance of stablecoins by non-banking entities. This legislation was officially enforced as of June 1, 2023.
MUFG, in a press release on June 2, elaborated that Progmat Coin would be leveraged to expedite the issuance of bank-backed stablecoins on various networks, including Ethereum, Polygon, Avalanche, and Cosmos. They also shared plans to include more networks in the foreseeable future.
MUFG’s Tech Allies: Advancing Cross-Chain Transactions
MUFG further disclosed its collaboration with blockchain technology and security partners Toki and Datachain. Together, they aim to construct a bridge to facilitate cross-chain transactions, lending, and swaps across the supported blockchains.
The anticipated launch of this advanced cross-chain infrastructure is slated for the second quarter of 2022.
Progmat Coin: A Universal Digital Asset Payment Method
MUFG initially unveiled the Progmat Coin in February 2022, aspiring to offer an interoperable and universal digital asset payment method that can be utilized for stablecoins, other crypto assets, and potentially even a Japan-based central digital bank currency.
While MUFG hasn’t disclosed which banks will be the inaugural users of the Progmat Coin, it confirmed to Cointelegraph during its 2022 announcement that it is actively working on launching its Japanese yen-pegged stablecoin.
Not All Banks Align with Progmat Coin
According to a report from Nikkei Asia on June 1, Shikoku Bank, Tokyo Kiraboshi, and Minna Bank have all expressed intentions to issue stablecoins. But, interestingly, it seems they will not be utilizing the Progmat Coin platform for this venture.
These banks have chosen to utilize a different stablecoin platform, specifically crafted by Tokyo-based startup G.U. Technologies.
Through these exciting developments, it is clear that the face of stablecoin issuance in Japan is set to undergo substantial transformation.
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