Japanese Megabank, Mitsubishi UFJ, has announced its plans to launch a stablecoin issuance and interoperability platform in the coming year. The move is aimed at building cross-chain infrastructure for stablecoins in collaboration with Tokyo-based company, Datachain.
Mitsubishi UFJ has been piloting the project since March. They will also be working closely with Datachain to develop the stablecoin issuance management platform called Progmat Coin. The platform will initially target public blockchain networks such as Ethereum, Cosmos, Avalanche, and Polygon. Subsequently, it will expand to other blockchain networks.
New Stablecoin Regulations in Japan
The timing of this announcement aligns with a recent legal amendment in Japan that lifted the ban on stablecoin issuance for domestic firms. With the regulatory landscape now more favorable, trust banks in Japan are showing keen interest in launching stablecoins. These coins are expected to play a significant role in international trade.
Mitsubishi UFJ and its partners have ambitious goals for the stablecoin issuance platform. They aim to create a cross-chain bridge that can be utilized globally. This will allow for seamless transactions between different blockchain networks. The platform, scheduled for launch in the second quarter of 2024, will provide stablecoin issuance functions. Additionally, it will enable cross-chain swaps, lending, and payments.
Expansion into NFTs and Security Tokens
In addition to stablecoins, the platform aims to support the issuance of non-fungible tokens (NFTs) and security tokens. This expansion will further bridge the gap between traditional assets and the crypto sphere, opening up new possibilities for the integration of real-world assets into blockchain technology.
The partnership between Mitsubishi UFJ and Datachain marks a significant milestone in the integration of Japanese real-world assets into the crypto sphere. Both companies express their enthusiasm for the future, as they work towards creating a stablecoin issuance platform that offers global accessibility and a wide range of functionalities.
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