Updated: September 6, 2024 5:59 AM EDT
Japan’s three largest banks (MUFG, SMBC, Mizuho) will pilot a cross-border stablecoin transfer platform to provide faster international payments for businesses.
The pilot, dubbed “Project Pax,” will utilize a stablecoin issued by Progmat, a blockchain startup backed by the three banks, SBI Holdings and Japan Exchange Group, according to Thursday. press releaseThis project is operated by Progmat, Datachain, and TOKI to facilitate cross-chain transaction testing.
The project plans to use SWIFT’s existing API framework for banks to instruct Progmat to make payments on the blockchain network, which could help address anti-money laundering and other compliance challenges. “This will allow financial institutions to avoid operational duplication and minimize investment costs due to fiat currency transfers,” the project said.
“Project Pax” will start as a prototype and aims to commercialize the platform by 2025, the company said in a statement.
“By integrating these regulated stablecoins with a truly open and secure cross-chain messaging standard, with the current cross-border messaging framework, we are enabling cross-border payments for businesses at internet speeds,” the team separately said. Blog Posts.
Progmat has built its own stablecoin platform, “Progmat Coin,” with the support of several major financial institutions in Japan. The project added that “(various) stablecoins issued using the ‘Progmat Coin’ platform can be denominated in major legal currencies such as JPY, USD, and EUR, allowing flexible use both domestically and internationally.”
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