Three Major Japanese Banks Test Cross-Border Stablecoin Transfer Platform
Three Japanese banks, MUFG, SMBC, and Mizuho, are collaborating to test a cross-border stablecoin transfer platform that, if successful, will be commercialized in 2025.
Three major Japanese banks, MUFG, SMBC, and Mizuho, are preparing to test a cross-border stablecoin transfer platform, aiming to provide faster international payments services for businesses.
The pilot project, called “Project Pax,” will leverage stablecoins issued through Progmat, a blockchain startup backed by SBI Holdings and Japan Exchange Group, according to a press release.
Project Pax is run by Progmat, Datachain, and TOKI to facilitate testing of cross-chain transactions.
The project will use SWIFT’s existing API framework for banks to help Progmat process payments on the blockchain network. This process could help address anti-money laundering and regulatory compliance challenges.
The project says:
"We aim to enable financial institutions to avoid operational redundancy when transacting fiat and minimize investment costs."
"Project Pax" will start with a prototype and aims to commercialize the platform by 2025.
The team shared in a report that:
"By integrating compliant stablecoins and using open and secure cross-chain messaging standards, we can enable businesses to make cross-border payments at Internet speeds."
Progmat also established a stablecoin platform called "Progmat Coin".
“Many stablecoins issued using the Progmat Coin platform are pegged to major fiat currencies such as JPY, USD and EUR, allowing for flexible domestic and international use."
Stablecoins are increasingly proving their strength in cross-border remittances. That is why, although the crypto market is losing momentum, the stablecoin segment has not slowed down.
Stablecoin capitalization reaches new ATH, surpassing the record of early 2022. Not to be missed, the giant PayPal has also quickly built its own stablecoin, PYUSD, and has just surpassed the $1 billion capitalization mark.
