Mitsubishi UFJ Financial Group MUFG launches stablecoin issuance platform, Progmat Coin.
The platform allows native banks in Japan to issue stablecoins, backed by local banks, on multiple public blockchains. This move comes as new legislation permits trust banks in Japan to issue stablecoins.
MUFG’s Progmat Coin will facilitate stablecoin issuance on various blockchains, including Ethereum, Avalanche, Cosmos, and Polygon. The platform aims to support stablecoin issuance from multiple trust banks, not just MUFG.
New Legislation Enables Trust Banks to Issue Stablecoins
In line with the recent announcement, the new legislation in Japan allows trust banks to issue stablecoins. Progmat Coin is designed to accommodate stablecoin issuance by various trust banks, thereby promoting the adoption of stablecoins in the country.
Additionally, MUFG has formed strategic partnerships to enhance blockchain interoperability for Progmat Coin. The bank is collaborating with DataChain, a blockchain interoperability startup, and TOKI, a cross-chain bridge solution based on DataChain’s technology.
This collaboration aims to facilitate cross-chain swaps, payments, and lending, enabling seamless transactions across different blockchains. Notably, Progmat Coin can be utilized for settling purchases of non-fungible tokens (NFTs) on different blockchains.
Furthermore, TOKI, in collaboration with Progmat Coin, plans to launch liquidity pools on multiple blockchains. This initiative will enhance liquidity and further support the use of Progmat Coins. Additionally, TOKI intends to introduce its own cryptocurrency token in the near future.
Strong Backing from Stock Exchange Operators
Originally introduced by MUFG in February last year, Progmat Coin has gained significant support. It has evolved into a joint venture with backing from major stock exchange operators, including JPX, Mizuho, SMBC, SBI, and others. This backing highlights the growing recognition and acceptance of digital assets and stablecoins within Japan’s financial ecosystem.