Megabank Mitsubishi UFJ Monetary Group (MUFG) has introduced that its stablecoin issuance platform, Progmat Coin, will quickly be utilized by banks in Japan to launch Japanese yen-pegged stablecoins on a number of public blockchains.
Japanese banks not too long ago introduced their intention to both evaluate or launch stablecoins after new laws got here into impact this month.
In mid-2022, the Japanese authorities handed laws banning stablecoin issuance by non-banks. The invoice formally went into impact on June 1, 2023.
In a June 2nd NoticeMUFG defined that the Progmat Coin shall be used to facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche and Cosmos, with extra networks to be added sooner or later.
MUFG additionally introduced that its blockchain know-how and safety companions Toki and Datachain are constructing a bridge to allow cross-chain transactions, lending and swaps between the supported blockchains.
The financial institution anticipates that the cross-chain infrastructure shall be rolled out within the second quarter of 2022.
Progmat Coin cross-chain interoperability. Supply: MUFG
MUFG first introduced Progmat Coin in February 2022, aiming to offer an interoperable and “common digital asset fee methodology” for stablecoins, different crypto property, and even a Japan-based core digital financial institution forex.
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MUFG has not revealed which banks would be the first to make use of Progmat Coin; Nevertheless, on the time of the announcement in 2022, it confirmed to Cointelegraph that it was engaged on launching its personal Japanese yen-pegged stablecoin.
After In keeping with a June 1 report by Nikkei Asia, Shikoku Financial institution, Tokyo Kiraboshi, and Minna Financial institution are all planning to difficulty stablecoins; Nevertheless, it seems like they aren't utilizing the Progmat Coin platform for that.
The publication states that these banks will use a separate stablecoin platform developed by Tokyo-based startup GU Applied sciences.
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