The Progmat Coin ecosystem is taking shape in Japan. With a market maker, wallet provider, and cryptocurrency exchange on board, Progmat and Mitsubishi UFJ Financial Group (MUFG) hope to launch two stablecoins in summer 2024.
Stablecoin platform Progmat Coin, MUFG, and wallet provider Ginco have begun a study with the goal of issuing a yen-denominated XJPY stablecoin and a dollar-denominated XUSD stablecoin, Progmat. saying in a sentence. This is in addition to the platform’s feature that allows for the issuance of stablecoins.
#Japan #stablecoins crypto?src=hash&ref_src=twsrc%5Etfw”>#crypto #Payments@ginco_incMitsubishi UFJ Trust and Banking, and #Program are initiating a joint study to introduce an “infrastructure stablecoin” with the aim of improving settlement efficiency among cryptoasset market players by leveraging… pic.twitter.com/Ei3I7t2bVb
-Norbert Gehrke (@norbertgehrke) November 7, 2023
Liquidity provider Cumberland and cryptocurrency exchanges Bitbank and Mercoin also feature in Progmat’s plans, and other cryptoasset-related companies are invited to join. Binance Japan announced in September that it was conducting a joint study with MUFG on issuing stablecoins pegged to various currencies.
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The XJPY and XUSD stablecoins will be intended to improve the efficiency of settlements between cryptoasset exchanges, and XUSD will be used in cross-border settlements. Japanese crypto exchanges use banks for settlement, according to the Tokyo Fin tech blog, causing delays that the Progmat system will eliminate.
MUFG introduced the Progmat platform in February 2022 in consortium with other large Japanese banks. It is regulated by the revised Payment Services Law that came into effect in June 2023. The revised law provides for three types of stablecoins. Progmat would support the “trust” type currency, issued by fiduciary banks.
MUFG said in June that Progmat would be used for banks to issue stablecoins on ethereum, Polygon, Avalanche and Cosmos. Only banks can issue stablecoins under Japanese law, and stablecoins on Progmat will need to undergo licensing before being launched.
Progmat Coin does not work in a vacuum. Blockchain startup Soramitsu is exploring a new stablecoin exchange for cross-border payments to Asian countries using Cambodia’s central bank digital currency as well as the stablecoin. Tokyo-based startup GU Technologies is also reportedly creating a stablecoin platform.
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