Mitsubishi UFJ Financial Group, Datachain and Solamitsu are working on making the yen-backed stablecoin, Progmat Coin, interoperable. There are expectations that this will improve settlement times and reduce associated fees.
Mitsubishi UFJ Financial Group, Japan’s largest bank, has begun development to make the domestic stablecoin interoperable. Local media outlets report that the bank is working with Datachain and Solamitsu “to realize a seamless mutual transfer and exchange between various types of domestically issued table coins.”
Stablecoin interoperability to settle remittances
The stablecoin in question is called Progmat Coin and it uses Hyperledger Iroha. The parties say that the interoperability of this stablecoin with domestic financial institutions will improve exchange. Businesses intend to use Hyperledger Iroha, a permissioned blockchain network. the report reads,
“This will result in a variety of stable and smooth mutual transfers and exchanges between regional digital currencies issued by different banks and other countries, and enable the streamlining of interbank, business-to-business and personal remittances.” “
In the future, development efforts will shift towards reducing cross-border remittances and fees and include foreign central bank digital currencies (CBDCs). Japan is expected to introduce a bill on stable coins in 2023, which would allow banks to issue stable coins.
Program coin could have a wide range of use cases
Progmat Coin was first announced in 2022 to streamline settlement processes. However, Progmat is more than just a settlement solution, as it can appear on other networks as well. The fact that it will allow cross-border remittances and exchanges with other CBDCs adds to its use cases.
Progmat is also a platform, reportedly with utility tokens in the works. The development may eventually focus on NFTs and other crypto assets as well. Given that Japan is attracting Web 3 talent, the stablecoin may see more widespread use cases in the future.
Mitsubishi and others move deeper into crypto
Mitsubishi Bank is ramping up its efforts regarding blockchain technology and cryptocurrencies. For example, the country may soon allow 13 registered trust banks including this one to provide crypto custody services. While lawmakers are keen to ensure the protection of investors during these developments, especially after the collapse of UST.
In recent news, China’s Alibaba announced a Web3 incubator in Japan, which will support Tokyo Land Corporation and Skeleton Crew Studio. Later, it will introduce a blockchain node service.
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