MUFG to facilitate Japanese bank-backed stablecoins via Progmat Coin platform

Would You like a feature Interview?


All Interviews are 100% FREE of Charge

Megabank Mitsubishi UFJ Financial Group (MUFG) announced that its stablecoin issuance platform “Progmatcoin” will soon be issued by Japanese banks on multiple public blockchains with yen-pegged stablecoins. announced to be used.

Japanese banks recently outlined their intention to consider or introduce stablecoins following new regulations that went into effect this month.

In mid-2022, the Japanese government passed a bill banning the issuance of stablecoins by non-banking institutions. The bill officially entered into force on June 1, 2023.

on June 2nd announcementMUFG outlines that Progmat Coin will be used to facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche and Cosmos, with more networks to be added in the future. Did.

MUFG also revealed that blockchain technology and security partners TOKI and Datachain are building a bridge to enable cross-chain transactions, loans and swaps between a list of supported blockchains.

The bank expects the cross-chain infrastructure to be launched in the second quarter of 2022.

Cross-chain interoperability of Progmat Coin. Source: MUFG

MUFG originally announced Progmat Coin in February 2022, with the aim of being interoperable with stablecoins, other crypto assets, and even Japan-based Central Digital Bank Currency (CBDC). was to provide a “universal digital asset payment method”.

Related: OpenAI receives warning from Japanese regulator over data collection

MUFG has not disclosed which bank will be the first to use the program coin, but confirmed to Cointelegraph during the program coin announcement last year that it was working on launching its own yen-pegged stablecoin.

As reported on June 1st report Banks of Nikkei Asia, Shikoku Bank, Tokyo Kiraboshi, and Minna Bank all plan to issue stablecoins, but they do not appear to be using programmatic coins for their issuance.

The publication states that the banks will use another stablecoin platform developed by Tokyo-based startup GU Technologies.

magazine: Asia Express: RMB Stablecoin Team Arrested, WeChat New Bitcoin Price, Hong Kong Crypto Rules