Japan launched a platform for using stablecoins in cross-border payments, which is being developed with the support of the country’s largest financial companies. The initiative aims to streamline cross-border transfers and address inefficiencies in global payments.
Datachain, a Japanese blockchain company specializing in DLT interoperability, announced the launch of Project Pax, an initiative to create a platform for using stablecoins in cross-border payments.
The solution was developed by Datachain in collaboration with Progmat, a provider of tech solutions for digital asset issuance and management, and cross-chain protocol TOKI. Under the initiative, the roles will be divided as follows:
- Datachain will provide the integration of Inter-Blockchain Communication (IBC) through the LCP middleware;
- Progmat will develop smart contracts for stablecoins;
- TOKI will enable liquidity and cross-chain infrastructure for asset utilization.
The new platform is designed to provide fast and secure processing of cross-border payments, envisioning integration with the traditional banking system.
The main goal of Project Pax is to enable the use of stablecoins for cross-border payments, making transfers faster, available in real-time and minimizing transaction costs. The platform will leverage existing financial infrastructure, specifically SWIFT’s API, to integrate with the Progmat blockchain. This approach will enable banks and other financial institutions to efficiently use stablecoins for cross-border transactions, while meeting regulatory requirements and eliminating the need for traditional fiat transfers.
Japan’s three largest financial companies, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Financial Group, endorsed the initiative. The financial giants will directly participate in the testing of Project Pax.
The stablecoin market continues to grow actively, reaching $164 billion in July this year. On average, the monthly volume of stablecoin transactions is more than $1 trillion, which attracts close attention of financial regulators. They express extreme concern about the impact of stablecoins on the global economy.
