According to Cointelegraph, Datachain, a blockchain startup focused on interoperability, has announced the launch of Project Pax, a stablecoin platform designed to facilitate cross-border business settlements. The initiative is backed by Japan’s three largest banks: Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank. The project is a collaboration between blockchain companies such as Datachain, Progmat, and TOKI, with expectations of global participation from financial institutions.

The $182 trillion global cross-border payments market faces significant inefficiencies in speed, accessibility, and cost, despite being a primary focus for financial institutions. The G20 has identified these inefficiencies and the need for substantial improvements in transparency. In this market, Progmat and Datachain aim to leverage stablecoins to enable fast, cost-effective, and 24/7 operational cross-border transfers.

Project Pax aims to address the inefficiencies highlighted by the G20 by integrating stablecoins into the international business settlement process. The initiative seeks to change the limited adoption of fiat-pegged cryptocurrencies for traditional business operations by using stablecoins as an enterprise payment tool. The stablecoin platform will utilize Swift’s existing API framework for banks to instruct Progmat to settle on blockchain. This approach addresses AML/CFT, regulatory compliance, and operational setup challenges while considering the difficulties businesses face in using wallets. It enables financial institutions to avoid operational redundancy with fiat currency transfers and minimize investment costs.

As of Sept. 3, Bitcoin (BTC) price had fallen 6.5% with no sign of slowing. Traders attributed the downtrend to statements issued by the Bank of Japan (BoJ), rekindling fears of recession. In a document issued to a government panel, BoJ Governor Kazuo Ueda stated the central bank’s policy decision in July, indicating that the regulator would continue to hike interest rates. The statement prompted traders with a stark reminder of late July, when the benchmark rise saw an unwinding of Japanese Yen carry trades and the destabilization of risk assets, like BTC.