Japanese Bank-Backed Stablecoins To Be Offered On Progmat Coin By MUFG
Table of contents
Japan to ban non-banking firms from issuing stablecoins in 2023
The Japanese government enacted a law in the middle of 2022 that forbade non-banking institutions from issuing stablecoins. On June 1, 2023, the legislation went into effect in full. The Progmat Coin will be used to facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche, and Cosmos, with additional networks to be added in the future, according to MUFG's announcement. Additionally, MUFG disclosed that its blockchain technology and security partners TOKI and Datachain are developing a bridge to facilitate cross-chain lending, swaps, and transactions among the list of supported blockchains.
Japan's MUFG to launch cross-chain banking for stablecoins and other financial services
The bank anticipates launching the cross-chain infrastructure in the second quarter of 2022. With the objective to give an interoperable and "general computerized resource installment technique" for stablecoins, other crypto resources, and, surprisingly, a Japan-based focal computerized bank money (CBDC). MUFG hasn't said which banks will use Program Coin first, but it did tell Cointelegraph when Progmat Coin was announced last year that it is working on launching its own stablecoin that is pegged to the Yen.
Nikkei Asia reported that Shikoku Bank, Tokyo Kiraboshi, and Minna Bank all intend to issue stablecoins, but it appears they won't be doing so with Program Coin. According to the publication, these banks will use a separate stablecoin platform developed by G.U. Technologies, a Tokyo-based startup.