As a seasoned analyst with over two decades of experience in the financial sector, I find this collaboration between MUFG Bank, Mizuho Financial Group, and SMBC, along with Progmat and Datachain, to be an intriguing development that could potentially reshape the global remittance landscape.
Major Japanese banking institutions such as MUFG Bank, Mizuho Financial Group, and SMBC are planning to trial cross-border transactions using stablecoins, utilizing SWIFT’s Application Programming Interface (API).
Three prominent Japanese financial organizations – Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group – are preparing to test cross-border transfers using digital coins (stablecoins) through a collaboration called “Project Pax.” This project is a combined effort between Progmat and Datachain.
On September 5th, Datachain announced through a blog post that their platform aims to revolutionize the current global remittance system by integrating SWIFT’s API. This move is part of an initiative to facilitate round-the-clock cross-border transactions using stablecoins, all while reducing operational expenses for banks.
“The cross-border transfer system developed by Project Pax plans to leverage Swift’s current API structure for banks to command Progmat to carry out transactions on blockchain networks. This approach aims to tackle issues related to Anti-Money Laundering (AML), Countering Financing of Terrorism (CFT), regulatory compliance, and operational setup complexities. Simultaneously, it takes into account the hurdles businesses encounter when using digital wallets.”
Datachain
As a crypto investor, I’m excited about the upcoming trial that enables cross-blockchain transactions through Inter-Blockchain Communication (IBC) protocols. This means smoother and more seamless movement of my digital assets between various blockchains, enhancing the overall user experience.
Japanese banks focus on stablecoin market
According to Datachain, their ultimate aim is to establish a platform suitable for business users, which allows for quicker and less expensive international money transfers, all while minimizing the need for extensive understanding of stablecoins or blockchain technology.
In Japan’s rapidly changing financial world, Progmat and Datachain are key contributors, specializing in building infrastructure for stablecoins. Progmat, supported by MUFG, makes it possible to issue compliant stablecoins on blockchain platforms such as Ethereum and Polygon. On the other hand, Datachain – another MUFG-backed company – offers the ability to transfer assets across different networks due to its cross-chain capabilities.
The primary goal of this project, centered around scalability, is projected to transition into full market operation by the year 2025. However, exact timetables for various stages have yet to be disclosed.
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2024-09-06 16:10