Progmat Coin Collaborates with MUFG to Launch Two Stablecoins in Japan by 2024
Summary:
Progmat Coin, in conjunction with Mitsubishi UFJ Financial Group (MUFG) and wallet provider Ginco, aims to launch two stablecoins in Japan by summer 2024. Participating in this venture include crypto exchanges like Bitbank and Mercoin, liquidity provider Cumberland, and others. The intent is to enhance settlement efficiencies among crypto asset market players. Progmat Coin operates under the revised Japanese Payment Services Act, and supports trust-type coins issued by banks. These initiatives add to the growing stablecoin market in Japan with other businesses also exploring similar ventures.
Japan is becoming a robust ecosystem for Progmat Coin, with the incorporation of a market maker, a wallet provider, and various cryptocurrency exchanges. In a joint effort with Mitsubishi UFJ Financial Group (MUFG), Progmat aims to unveil two stablecoins by the summer of 2024.
Progmat Coin, MUFG, and wallet provider Ginco have initiated a research project with the objective of launching a yen-based XJPY stablecoin and a dollar-based XUSD stablecoin, according to a statement from Progmat. This venture is in line with Progmat's goal of enabling stablecoin issuance.
In conjunction with Ginco, Mitsubishi UFJ Trust and Banking, and Progmat, a joint study is underway to establish an "infrastructure stablecoin", aimed at enhancing settlement efficiencies among participants in the crypto asset market.
Bitbank and Mercoin, two crypto exchanges, along with liquidity provider Cumberland, are part of the Progmat agenda, and other businesses related to crypto assets are encouraged to get involved. In September, Binance Japan announced a joint study with MUFG to explore the issuance of stablecoins tied to various currencies.
The XJPY and XUSD stablecoins will purportedly enhance settlement efficiencies amongst different crypto asset exchanges, with the XUSD designed for use in cross-border transactions. Traditional banking systems are currently used by Japanese crypto exchanges for settlements, leading to unavoidable delays that Progmat aims to circumvent.
In February 2022, MUFG, in partnership with several other prominent Japanese banks, launched the Progmat platform. It operates under the revised Payment Services Act enforced from June 2023. This revised Act allows for three variants of stablecoin, with Progmat expected to support the ‘trust' type of coin that trust banks issue.
MUFG revealed in June that Progmat will allow banks to issue stablecoins on various platforms including Ethereum, Polygon, Avalanche, and Cosmos. Under Japanese law, only banks hold the right to issue stablecoins, and before launch, any stablecoin on Progmat will be expected to obtain the necessary license.
Beyond Progmat Coin, other initiatives are brewing. Blockchain start-up Soramitsu is investigating the feasibility of a new stablecoin exchange for cross-border payments to Asian countries using Cambodia’s central bank digital currency and stablecoin. Furthermore, Tokyo-based start-up G.U. Technologies is allegedly working towards establishing a stablecoin platform as well.
Published At
11/8/2023 8:51:13 PM
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