MUFG To Issue Bank-Backed Stablecoins On Multiple Blockchains Using Progmat Coin Solution
- MUFG, Japan’s largest bank, is set to issue bank-backed stablecoins on multiple public blockchains using its Progmat Coin solution.
- Collaborating with blockchain interoperability startup DataChain, MUFG aims to enable cross-chain swaps, payments, and lending across platforms such as Ethereum, Avalanche, Cosmos, and Polygon.
MUFG, the country’s largest bank, has announced the implementation of its Progmat Coin solution to issue native bank-backed stablecoins on various public blockchains.
This move comes after new legislation permitting Japanese trust banks to issue stablecoins came into effect recently. The Progmat Coin solution, developed by MUFG, enables stablecoin issuance by multiple trust banks, expanding its scope beyond the bank itself.
By leveraging blockchain interoperability startup DataChain’s technology, MUFG aims to facilitate cross-chain swaps, payments, and lending across public blockchains, such as Ethereum, Avalanche, Cosmos, and Polygon. This interoperability can enable seamless settlements of transactions involving different blockchain-based assets, including NFT purchases settled with Progmat Coin on a different blockchain.
Furthermore, the Progmat platform not only supports stablecoins but also security and utility tokens. As part of its evolution, MUFG is transforming Progmat into a joint venture with support from prominent financial institutions like JPX, Mizuho, SMBC, and SBI, in addition to backing from Japan’s main stock exchange operator.
The core platform of Progmat utilizes R3’s Corda enterprise blockchain, known for its robustness and scalability. DataChain, which collaborates with MUFG, employs Cosmos’ Inter-Blockchain Communication (IBC) protocol, allowing seamless interoperability between different blockchains. In fact, DataChain’s technology, known as Hyperledger YUI Lab, has been open sourced, promoting further innovation in the blockchain ecosystem.
To strengthen its offering, MUFG has also partnered with JCB, Japan’s leading card company akin to Visa, expanding the potential use cases and applications of its blockchain-based solutions.
The adoption of Progmat Coin and the collaboration with DataChain signify MUFG’s commitment to advancing blockchain technology in the financial sector, while the support from various stakeholders highlights the growing interest and potential of blockchain-based solutions in Japan’s financial landscape.
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