Mitsubishi UFJ Financial Group (MUFG) is launching Progmat Coin, a platform that will allow Japanese banks to issue and maintain stablecoins.
Financial holding company MUFG, the largest bank in Japan and one of the ten biggest banks in the world with about $3.3 trillion in assets, announced the launch of its Progmat Coin platform. The platform will allow Japanese banks to issue yen-pegged stablecoins on several public blockchain networks.
Ethereum, Polygon, Avalanche, and Cosmos blockchain networks will initially be available to platform users. Other networks are planned to be added in the future. R3 Corda is used as the project’s underlying blockchain network, while the Inter-Blockchain Communication protocol and Hyperledger YUI Lab technology will be responsible for cross-chain interaction. Datachain and TOKI will provide multichain interoperability and security for the project.
The platform will enable cross-network swaps, public blockchain payments, and lending, as well as seamless settlement of transactions using a variety of digital assets, including NFT purchases. In addition, the platform will support not only stablecoins, but also security and utility tokens.
According to MUFG’s plans outlined in a May report, the Progmat Coin platform will be fully operational by September 2023. The project, supported by Japan’s main stock exchange operator, will then be transformed into a joint venture involving financial institutions such as JPX, Mizuho, SMBC, and SBI.
On June 1, Japan officially enacted a law banning the issuance of stablecoins by non-bank institutions. Against this background, a number of Japanese banks announced their intention to launch stablecoins in accordance with the new rules, or to explore such a possibility. Thus, it became known that Shikoku Bank, Tokyo Kiraboshi, and Minna Bank planned to issue stablecoins. They intend to use a platform developed by Tokyo startup GU Technologies. This is reported by Nikkei Asia.
However, representatives of MUFG announced the launch of Progmat Coin back in February 2022, though at that time the question was only about the issue of their own stablecoins. Since then, the concept of the project has been changed. It should be noted that large Japanese businesses are interested in blockchain technology beyond the financial sector. For example, Japan’s biggest airline, All Nippon Airways, recently launched its own NFT marketplace.
