Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, outlined its Progmat Coin platform last Friday to enable the issuance and trading of stablecoins issued and backed by Japanese banks.
- Progmat Coin uses blockchain technology to enable the issuance and trading of digital assets. This platform will allow banks in Japan to launch stablecoins on Ethereum, Polygon, Avalanche and Cosmos, with plans to expand to more public blockchains in the future.
- MUFG partnered blockchain tech firms Datachain and Toki to build cross-chain capabilities and interoperability between public blockchains.
- MUFG’s announcement came a day after Japan’s new laws that limit stablecoin issuance to established financial institutions came into effect.
- Stablecoins are a type of cryptocurrency that is tied to the value of another asset, typically fiat currencies. They offer stability that contrasts with the typical volatility seen in the cryptocurrency market, making them a more steady choice for investors.
See related article: Japanese banks to launch, test stablecoins on ‘Japan Open Chain’
(Updates to revise fourth bullet point.)