According to ChainCatcher, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank will pilot a stablecoin platform to facilitate cross-border transfers.

According to the press release, the pilot test, called “Project Pax,” will utilize a stablecoin issued by Progmat, a blockchain startup backed by SBI Holdings and Japan Exchange Group. The project will be run by Progmat, Datachain, and TOKI to facilitate testing of cross-chain transactions.

The project plans to use SWIFT’s existing banking API framework to instruct Progmat to settle on a blockchain network. This helps address anti-money laundering and other compliance challenges. “This enables financial institutions to avoid operational redundancies in fiat currency transfers and minimize investment costs,” the project said.

"Project Pax" will start with a prototype, with the goal of commercializing the platform by 2025, according to the statement.