Friday, March 29, 2024

Mitsubishi UFJ Financial Group (MUFG), the largest bank in Japan, has unveiled its plans to introduce bank-backed stablecoins on various public blockchains. Through collaborations with Datachain, a blockchain interoperability company, and Toki, a cross-chain bridge, MUFG aims to enable the seamless operation of licensed stablecoins across multiple blockchains using its Progmat Coin protocol.

MUFG Forms Technical Partnership to Issue Stablecoins

MUFG is set to deploy stablecoins on public blockchains, as the bank, managing $776 billion in assets under management (AUM) as of 2020, teams up with blockchain interoperability firm Datachain and cross-chain bridge provider Toki.

This announcement follows the enactment of the revised funds settlement law in 2022, which allows financial institutions to issue stablecoins. MUFG will leverage its in-house developer platform called “Progmat Coin” to facilitate the settlement of security-based products. Progmat Coin offers extended capabilities for managing cryptocurrency and embedded finance use cases.

To enhance the transactional efficiency of these stable assets, MUFG will utilize the services of Toki, a recently emerged startup. Toki will enable the seamless transfer of assets across various public blockchains, including Ethereum, Cosmos, Avalanche, and Polygon.

The anticipated use cases for these stablecoins include cross-chain swaps, enabling asset exchange across different chains, cross-chain payments, and cross-chain lending, providing users with the ability to leverage lending protocols available on the mentioned blockchains.

It is worth noting that MUFG joined forces with Coinbase to introduce financial services in Japan in 2021.

Rising Demand for Stablecoins Expected in Japan

The removal of the ban on foreign bank-issued stablecoins in December has opened up a market with anticipated institutional demand. Many institutions are likely to be attracted to the convenience of bypassing banking sector fees for certain payments, while individuals can transact up to $715 without incurring charges.

By utilizing stablecoin-based payment rails, institutions can bypass the traditional banking system and achieve faster settlements with wire fees that are expected to be more cost-effective than those charged by conventional companies.

MUFG is not the only participant in this emerging market. Other Japanese banks have also announced their own stablecoin initiatives. Digital bank Minha Bank, in collaboration with Tokyo Kiraboshi Financial Group and Shikoku Bank, plans to launch its stablecoin using G.U. Technologies’ platform.

We would love to hear your thoughts on MUFG’s initiative to issue stablecoins on its in-house developed “Progmat Coin” platform. Please share your opinions in the comments section below.

Frequently Asked Questions (FAQs) about Japanese banking, stablecoins, public blockchains

What is MUFG’s plan regarding stablecoins on public blockchains?

MUFG, the largest bank in Japan, plans to deploy and distribute bank-backed stablecoins on different public blockchains. They aim to enable the interoperation of these stablecoins across multiple blockchains using their Progmat Coin protocol.

Who are the partners involved in MUFG’s stablecoin initiative?

MUFG has partnered with Datachain, a blockchain interoperability company, and Toki, a cross-chain bridge. Datachain will assist in achieving interoperability among various blockchains, while Toki will facilitate the seamless transfer of assets between public blockchains.

What is Progmat Coin and how will it be utilized?

Progmat Coin is MUFG’s in-house developed platform intended to facilitate settlements of security-based products and manage cryptocurrency and embedded finance use cases. It will serve as the protocol for deploying and managing stablecoins on public blockchains.

Which public blockchains will MUFG’s stablecoins be compatible with?

MUFG’s stablecoins will be compatible with multiple public blockchains, including Ethereum, Cosmos, Avalanche, and Polygon. This compatibility allows for cross-chain swaps, payments, and lending, enabling users to leverage different blockchain protocols.

Why is there anticipation for stablecoin demand in Japan?

The lifting of the ban on foreign bank-issued stablecoins in Japan has created a market with anticipated institutional demand. Institutions can benefit from faster settlements and lower fees by utilizing stablecoin-based payment rails, bypassing traditional banking systems. Individuals can also transact up to a certain amount without incurring charges.

More about Japanese banking, stablecoins, public blockchains

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

3 comments

John123 June 6, 2023 - 8:02 pm

Wow, it’s crazy to see MUFG, the biggest bank in Japan, gettin’ into the stablecoin game. They’re gonna deploy those stablecoins on different public blockchains? That’s gonna be somethin’ to watch out for, man. Partnership with Datachain and Toki sounds interestin’ too. Can’t wait to see how this all plays out.

Reply
CryptoEnthusiast June 6, 2023 - 8:02 pm

MUFG makin’ moves in the crypto space! Deployin’ stablecoins on public blockchains is a smart move. The collaboration with Datachain and Toki for interoperation is a win. Cross-chain swaps, payments, and lending? That’s some next-level stuff. Expectin’ institutional demand to soar, bro.

Reply
MoneyMaker92 June 6, 2023 - 8:02 pm

MUFG is takin’ the stablecoin route on public blockchains, huh? Sounds like they’re tryin’ to beat the fees and speed up settlements. Gotta admit, the partnership with Datachain and Toki sounds promisin’. Wonder how this will impact the financial landscape. Excitin’ times ahead!

Reply

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

Follow us

CryptokenTop

CrypTokenTop is a website dedicated to providing comprehensive information and analysis about the world of cryptocurrencies. We cover topics such as Bitcoin, Ethereum, NFTs, ICOs, and other popular crypto topics. Our mission is to help people learn more about the crypto space and make informed decisions about their investments. We provide in-depth articles, analysis, and reviews for beginners and experienced users alike, so everyone can make the most out of the ever-evolving world of cryptocurrency.

© 2023 All Right Reserved. CryptokenTop

en_USEnglish