
Japan’s largest banks have announced plans to collaborate on the creation of a stablecoin pegged to the yen, leveraging MUFG’s Progmat platform to advance payment systems and corporate transactions.
Japanese Banks Stablecoin
Reported by Nikkei, the consortium includes Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank, which together cater to over 300,000 corporate clients. Their aim is to unify the stablecoin for effortless transactions both within and between companies, with a target to launch by year’s end.
The first implementation is expected to occur at Mitsubishi Corp., which intends to utilize the stablecoin for internal transactions, aiming to optimize international fund transfers by reducing fees and administrative tasks.
Progress with MUFG’s Progmat Stablecoin Platform
In June, MUFG unveiled its stablecoin platform, Progmat Coin, promoting the issuance of yen-backed stablecoins across various blockchain networks, including Ethereum and Polygon.
On September 26, Binance Japan partnered with Mitsubishi UFJ Trust and Banking Corp. to investigate the issuance of new stablecoins using the Progmat Coin framework.
Takeshi Chino, General Manager at Binance Japan, stated that stablecoins are essential for fostering financial systems and play a crucial role in Web3 development.
The pursuit of yen-backed stablecoins aligns with broader institutional trends in Japan, as the Financial Services Agency looks toward approving their release. In August, JPYC emerged as a leader in this impending rollout, while Monex Group expressed intentions to introduce its own yen-pegged stablecoin.
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