Mitsubishi UFJ Financial Group (MUFG), one of Japan’s largest banks and a global leader in the financial industry, has made an exciting announcement. The company is launching its stablecoin issuance platform “Progmat Coin”, which will soon be used by other banks in Japan to launch Japanese yen-pegged stablecoins on several public blockchains.
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Although MUFG is yet to announce a launch date, it hopes to launch the platform in the second quarter of 2023 on Ethereum, Avalanche, Cosmos, and Polygon networks.
MUFG to Onboard Other Banks for Stablecoin Issuance
Interestingly, MUFG’s Progmat Coin platform is a game-changer for the financial industry as it will provide other banks in Japan the ability to launch their own stablecoins pegged to the Japanese yen.
Likewise, this will allow for greater flexibility and interoperability within the stablecoin ecosystem, as well as increased access to the benefits of blockchain technology. By launching the stablecoin issuance platform, MUFG is positioning itself at the forefront of the emerging market.
MUFG Secures Partnerships for Cross-Chain Payments
Interestingly, the bank has an active partnership with blockchain interoperability startup DataChain and cross-bridge solutions provider TOKI. These partnerships are geared towards supporting cross-chain swaps, payments, and lending across supported public blockchains.
Additionally, the Progmat Coin platform will enable other banks to leverage the power of blockchain technology to issue their own stablecoins and improve their payment systems. This could lead to greater efficiency, transparency, and security in financial transactions, as well as increased access to financial services for people who might not have had access before.
This development comes at a time when the use of stablecoins is rapidly increasing worldwide, particularly in the context of the Decentralized Finance (DeFi) ecosystem, providing liquidity and stability to an otherwise volatile market. By enabling other banks to issue their own stablecoins, Mitsubishi UFJ Financial Group is helping to expand this ecosystem and unlock new opportunities for growth and innovation.
Japan Passes Stablecoin Bill
As reported by last year, Japan passed its stablecoin regulation bill as it sought to enshrine investors’ protection with respect to unforeseen eventualities with the instability in stablecoins. The bill was passed by the Japanese Parliament and it clarified the legal status of stablecoins as digital money, a designation that implies they can now be issued by licensed banks, registered money transfer agents, and trust companies.
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