Japan’s Top Three Banks to Pilot Cross-Border Stablecoin Transfer Platform

SUMMARY

MUFG, SMBC, and Mizuho will test a stablecoin platform for cross-border transfers called “Project Pax.”
The project, led by blockchain firms like Progmat, Datachain, and TOKI, aims to involve more global banks.

Japan’s three major banks—MUFG, SMBC, and Mizuho—are launching a pilot test for a cross-border stablecoin transfer platform called “Project Pax.” This activity aims to revolutionize ventures’ international settlements by offering quicker, more proficient cross-border payments. Set to commercialize by 2025, the project seeks to integrate regulated stablecoins into the existing financial infrastructure, permitting for consistent transactions at the speed of the internet. The objective is to simplify the settlement process, decreasing costs and improving proficiency for banks and businesses included in global commerce.

“Project Pax” will utilize stablecoins issued through Progmat, a blockchain startup supported by MUFG, SMBC, Mizuho, SBI Holdings, and Japan Exchange Group. The platform will encourage cross-border exchanges utilizing SWIFT’s existing API framework, making it less demanding for banks to instruct settlements on blockchain networks. This strategy moreover addresses anti-money laundering concerns and guarantees compliance with money-related regulations. By leveraging blockchain innovation and secure cross-chain informing benchmarks, the platform aims to dispose of the operational redundancy seen in fiat currency exchanges, subsequently cutting down on investment costs.

In addition to quicker transaction speeds, the platform offers adaptability by permitting stablecoins to be denominated in major fiat currencies such as the Japanese yen (JPY), U.S. dollar (USD), and euro (EUR). This includes opening the door for both domestic and international use, making it less demanding for ventures to oversee cross-border payments efficiently.

With backing from Japan’s biggest financial institutions, the “Progmat Coin” stablecoin platform is set up to become a key player in the world of global payments. As blockchain continues to reshape the financial scene, ventures like “Project Pax” highlight Japan’s desire to remain at the cutting edge of innovation in cross-border transactions.

By 2025, this groundbreaking platform may reshape how ventures handle cross-border payments, making them quicker, more secure, and less expensive. “Project Pax” marks a leap forward in the future of international finance, leveraging blockchain innovation to push the boundaries of what’s conceivable in global banking.