Three of Japan's largest banks are set to trial a new stablecoin-based platform for cross-border transactions.
Three of Japan's largest banks are set to trial a new stablecoin-based platform for cross-border transactions. The initiative, dubbed "Project Pax," will be led by blockchain firms Progmat, Datachain, and TOKI, with the participation of MUFG, SMBC, and Mizuho banks.
The project aims to leverage stablecoins issued through Progmat, a blockchain startup backed by the three banks, as well as SBI Holdings and the Japan Exchange Group. According to a Thursday press release.
By integrating these regulated stablecoins with existing cross-border messaging frameworks, the platform hopes to enable faster and more efficient international settlements for enterprises.
"This enables financial institutions to avoid operational redundancy with fiat currency transfers and minimize investment costs," the project stated in a press release.
The extend points to use stablecoins issued through Progmat, a blockchain startup supported by the three banks, as well as SBI Possessions and the Japan Trade Gather.This approach is designed to address regulatory compliance challenges, such as anti-money laundering requirements.
"By integrating these regulated stablecoins and truly open and secure cross-chain messaging standards with the current cross-border messaging framework, we're enabling cross-border settlements for enterprises at the speed of the internet," the project team said in a blog post.
Progmat's "Progmat Coin" stablecoin platform will underpin the initiative, with the ability to issue stablecoins denominated in major fiat currencies like the Japanese yen, U.S. dollar, and Euro.
The "Project Pax" trial is set to commence with a prototype phase, with the aim of commercializing the platform by 2025, according to the project's statement.
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