In a bid to streamline digital transactions, Mitsubishi UFJ Financial Group (MUFG), Japan’s premier bank, has announced an ambitious plan to deploy Progmat Coins, its proprietary stablecoin solution.
These bank-backed tokens are set to be rolled out on several renowned public blockchains including Ethereum, Avalanche, Cosmos, and Polygon, although the release schedule remains undisclosed.
Progmat Coins are designed to support the issuance of stablecoins by MUFG, as well as by other trusted banks in Japan. This new initiative corresponds with the recent approval of legislation that empowers Japanese trust banks to issue stablecoins.
Today, we’re thrilled to announce that MUFG(Progmat), @datachain_en and TOKI have teamed up to bring Japanese stablecoins to public blockchains.
— TOKI 🐦 (@tokifinance) June 2, 2023
Partnering for a Better Blockchain
MUFG has shown consistent interest in fostering blockchain interoperability, underlined by their association with DataChain, a blockchain interoperability startup, and TOKI, a new cross-chain bridge solution built on DataChain’s technology.
These partnerships aim to bolster transactions like cross-chain swaps, lending, and payments on various public blockchains. For instance, it will enable users to settle purchases of non-fungible tokens (NFTs) across different networks using Progmat Coins.
Introducing TOKI: Facilitating Cross-Chain Transactions
Earlier this year, a DataChain executive established TOKI in Dubai, with plans to launch its bridge and debut its own cryptocurrency token in the coming months. By managing liquidity pools of Progmat Coins across several blockchains, TOKI is positioned to provide smooth transactions across networks.
While the initial focus is likely to be the Japanese market, the requirement for Know Your Customer (KYC) procedures for holding these stablecoins is still unclear. Further clarity on this regulation aspect is expected soon.
Bridging the Gap between Banking and Blockchain
With MUFG pioneering the deployment of bank-backed stablecoins via Progmat Coins, this initiative marks a crucial milestone in bridging the divide between traditional banking and blockchain technology. It has the potential to cause significant shifts in the global financial landscape.