Three major Japanese financial groups - Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC) and Mizuho Financial Group (Mizuho) - will participate in the trial of a stablecoin cross-border transfer platform aimed at providing businesses with Provides faster international settlement.
According to a press release issued on Thursday (5th), the project, called "Project Pax", will utilize the stablecoin issued by Progmat, a blockchain startup backed by the above three banks, SBI Holdings and Japan Exchange Group. The coin is undergoing preliminary trials and will be operated by Progmat, blockchain interoperability development company Datachain and cross-chain platform TOKI to facilitate testing of cross-chain transactions.
The project plans to use SWIFT’s existing API framework to allow banks to instruct Progmat to conduct settlements on the blockchain network, which will help solve money laundering prevention and other compliance challenges. “This enables financial institutions to avoid operational redundancies in fiat currency transfers and minimize investment costs,” the project states.
According to the statement, Project Pax will begin trials with a prototype and aims to commercialize a stablecoin cross-border transfer platform by 2025. The team wrote in another blog post:
“By combining these regulated stablecoins and truly open and secure cross-chain messaging standards with current cross-border messaging frameworks, we are enabling cross-border settlements at Internet speeds for businesses.”
Progmat established its “Progmat Coin” stablecoin platform with the support of several major financial institutions in Japan. The press release stated: "(Various) stablecoins issued using the 'Progmat Coin' platform can be denominated in major legal currencies such as Japanese yen, US dollars and euros, and can be flexibly used domestically and internationally."
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