Ginco Inc., Mitsubishi UFJ Trust and Banking Corporation and Progmat, Inc., announced the start of a joint study for the introduction of a stablecoin infrastructure that aims to improve settlement in the crypto market.
See related article: Moody’s unveils AI that predicts stablecoin depegging
- The study aims to issue two stablecoins, namely, the Japanese yen-denominated XJPY and the U.S. dollar-denominated XUSD. The two assets will be used to enhance cross-border settlement in the crypto industry.
- The new stablecoins will leverage the Progmat Coin platform, a stablecoin issuance and management system that is compliant with Japanese regulations, according to a press release shared with Forkast.
- Through the development of Progmat Coin, Mitsubishi UFJ Trust and Banking Corporation — the trust banking arm of Japan’s largest bank — and Progmat aims to create the infrastructure for issuing regulatory-compliant stablecoins in accordance with the revised Payment Services Act, which took effect in June 2023.
- The revised Payment Service Act allows only licensed financial institutions and registered money transfer agents to issue stablecoins.
- Other participants include crypto asset liquidity provider Cumberland Global Limited, Japan-based crypto exchange Bitbank Inc., and Mercoin.
See related article: SBF conviction closes “dark chapter” in crypto: Yat Siu