{"id":19145,"date":"2023-06-06T21:31:01","date_gmt":"2023-06-07T01:31:01","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/mitsubishi-ufj-set-to-launch-stablecoin-platform\/"},"modified":"2023-06-06T21:31:04","modified_gmt":"2023-06-07T01:31:04","slug":"mitsubishi-ufj-set-to-launch-stablecoin-platform","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=19145","title":{"rendered":"Mitsubishi UFJ Set to Launch Stablecoin Platform"},"content":{"rendered":"
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The Japanese banking giant Mitsubishi UFJ says it will launch a cross-chain stablecoin issuance and interoperability platform next year.<\/p>\n

In an official Mitsubishi UFJ announcement, the firm stated that it would work with a Tokyo-based company named Datachain to \u201cbuild cross-chain infrastructure for stablecoins.\u201d<\/p>\n

Mitsubishi UFJ began piloting the project back in March.<\/p>\n

A company named Toki, which is based in Dubai, will \u201cestablish a liquidity pool\u201d for each of the blockchain networks the platform handles.<\/p>\n

The companies said that they would develop a \u201cstablecoin issuance management platform\u201d named Progmat Coin.<\/p>\n

\u201cTarget public blockchain networks\u201d for the platform \u201cinclude Ethereum, Cosmos, Avalanche, and Polygon.\u201d<\/p>\n

But the companies said they \u201cplan to expand to other blockchain [networks] in the future.\u201d<\/p>\n

The move comes just days after a new stablecoin-related legal amendment came into force in Japan.<\/p>\n

The amendment effectively lifts a long-standing ban on stablecoin issuance for Japanese firms.<\/p>\n

Several trust banks are thought to be keen to launch stablecoins as a result.<\/p>\n

And many think these coins could be used in international trade.<\/p>\n

Mitsubishi UFJ has previously unveiled plans to release a coin of its own.<\/p>\n

But in more recent months, the bank has focused on blockchain interoperability solutions.<\/p>\n

As Japanese banks have begun drawing up their stablecoin plans, they appear to be making use of various blockchain solutions.<\/p>\n

Without a bridge-type solution, this could mean that inter-network transactions could prove problematic.<\/p>\n

Mitsubishi UFJ\u2019s Stablecoin Interoperability Project \u2013 Not Just for Japan?<\/h2>\n

The Mitsubishi UFJ-led project is not just for domestic use, the firms claimed.<\/p>\n

They spoke of launching a \u201ccross-chain bridge that can be used globally.\u201d<\/p>\n

The companies said they were aiming to launch the platform \u201cin the second quarter of 2024.\u201d<\/p>\n

And the bank added that the platform would have stablecoin issuance functions.<\/p>\n

The companies say the platform will allow for cross-chain swaps, lending, and payments.<\/p>\n

The firms also hope to create issuance options for non-fungible tokens (NFTs), as well as security tokens.<\/p>\n

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In Toki\u2019s own release, the firm wrote of the development:<\/p>\n

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\u201cThis marks a significant milestone in integrating Japanese real world assets into the crypto sphere. Exciting times ahead.\u201d<\/p>\n<\/blockquote><\/div>\n