Japan’s Three Largest Banks Launch Joint Yen Stablecoin on Blockchain Platform
The post Japan’s Three Largest Banks Launch Joint Yen Stablecoin com. Japan’s banking giants are making a bold move into digital currency. Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group announced they will jointly issue a stablecoin pegged to the Japanese yen and US dollar. The consortium expects to roll out the digital currency by the end of this fiscal year. The three banks collectively serve more than 300, 000 corporate clients across Japan. By creating a standardized digital token, they aim to cut transaction costs and speed up payments between companies. Mitsubishi Corporation will be the first company to use the stablecoin for settling payments across its 240+ global subsidiaries. Building on Progmat’s Infrastructure The stablecoin will run on MUFG’s Progmat platform, a blockchain system designed specifically for regulated financial institutions. MUFG announced Progmat Coin in June 2023, creating infrastructure that lets banks issue digital tokens on multiple public blockchains including Ethereum, Polygon, Avalanche, and Cosmos. Unlike typical cryptocurrency platforms, Progmat emphasizes bank custody, regulatory compliance, and standardization. This means different banks can issue tokens that work together seamlessly for corporate payments. The platform meets strict requirements from Japan’s Financial Services Agency, which oversees all stablecoin issuance in the country. The technical setup allows tokens issued by different banks to be standardized and used for payments within companies and between separate businesses. MUFG plans to expand support to additional blockchain networks beyond the current four. Project Pax: Connecting Traditional Banking with Blockchain In September 2024, the same three banks backed Project Pax, a related initiative focused on cross-border payments. This project uses SWIFT’s existing messaging system to let banks instruct the Progmat platform to settle transactions on blockchain networks. Project Pax addresses major pain points in international business payments. The $182 trillion global cross-border payments market faces persistent challenges with speed, cost, and accessibility. By.