MUFG to facilitate Japanese bank-backed stablecoin via Progmat Coin platform

Megabank Mitsubishi UFJ Financial Group (MUFG) has announced that its stablecoin issuance platform “Progmat Coin” will soon be used by Japanese banks to launch yen-pegged stablecoins on several public blockchains.

Japanese banks have recently outlined their intention to either look at or launch stablecoins following new regulations that came into force this month.

In mid-2022, the Japanese government passed a bill that prohibited the issuance of stablecoins by non-banking institutions. The bill officially went into effect on June 1, 2023.

2 in June AnnouncementMUFG outlined that Pragmat Coin will be used to facilitate the issuance of bank-backed stable coins on Ethereum, Polygon, Avalanche and Cosmos, with more networks to be added in the future.

MUFG also revealed that its blockchain technology and security partner is building a bridge to enable cross-chain transactions, lending and swaps between TOKI and a list of Datachain-backed blockchains.

The bank expects to launch the cross-chain infrastructure in the second quarter of 2022.

MUFG initially announced Progmat Coin in February 2022, aiming to provide an interoperable and “universal digital asset payment method” for stable coins, other crypto assets and even a Japan-based central digital bank currency (CBDC) Was.

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MUFG hasn’t disclosed which banks will be the first to use Program Coin, however, it confirmed to Cointelegraph at the time of Program Coin’s announcement last year that it was working on launching its yen-pegged stablecoin. Used to be.

as of June 1 reports Nikkei Asia, Shikoku Bank, Tokyo Kiraboshi and Minna Bank are all planning to issue stable coins, however, it appears they will not be using Program Coin to do so.

The publication states that these banks will use a separate stablecoin platform developed by Tokyo-based startup GU Technologies.

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