Megabank Mitsubishi UFJ Financial Group (MUFG) has announced that its stablecoin issuance platform “Progmat Coin” will soon be used by Japanese banks to launch Japanese yen stablecoins on various public blockchains.
Japanese banks have recently indicated their intention to study or launch stablecoins in the wake of new regulations that came into effect this month.
In the middle of this year, the Japanese government passed a law that prohibited the issuance of stablecoins by non-bank institutions. The law officially entered into force on June 1, 2023.
On June 2, MUFG advertisement that Progmat Coin will be used to facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche, and Cosmos, with more networks to be added in the future.
MUFG also revealed that its blockchain security and technology partners Toki and Datachain are building a bridge to enable transactions, lending, and exchanges between the supported blockchains.
The bank expects the cross-chain infrastructure to go live in the second quarter of 2022.
MUFG initially announced Progmat Coin in February 2022, with the goal of providing a “universal” and interoperable digital asset payment method for stablecoins, other crypto assets, and even a Japan-based central digital bank currency.
MUFG has not revealed which banks will be the first to use the Progmat Coin; however, he confirmed to Cointelegraph at the time of his 2022 announcement that he is working on launching his own Japanese yen stablecoin.
According to a June 1 report from Nikkei Asia, Shikoku Bank, Tokyo Kiraboshi, and Minna Bank planning to issue stablecoins; however, it appears that they will not be using the Progmat Coin platform to do so.
The post claims that these banks will use an independent stablecoin platform developed by Tokyo-based startup GU Technologies.
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