- Three major Japanese banks are launching Yen- and Dollar-pegged stablecoins for corporate payments.
- The stablecoins will use the Progmat Coin platform to serve over 300,000 corporate clients in Japan.
- A pilot program with Mitsubishi Corporation will begin the issuance and use of the yen-backed stablecoin.
- The banks plan to issue stablecoins worth roughly $6.6 billion over the next three years.
- The initiative aims to improve security, reduce costs, and ease cross-border transactions in the corporate sector.
Three of Japan’s largest banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, have announced plans to issue stablecoins pegged to the Japanese Yen and the U.S. Dollar for corporate cryptocurrency payments. The project launched recently and targets more than 300,000 corporate clients across Japan.
According to reported plans, these bank-issued digital currencies will operate on the Progmat Coin platform, developed by MUFG. This platform focuses on regulatory compliance and will oversee issuance and governance of the stablecoins.
Initially, a pilot program will begin with Mitsubishi Corporation using a yen-backed stablecoin for corporate settlement. This initiative is designed to address common challenges such as security risks and unclear regulations around corporate crypto payments. Jeremy Allaire, CEO of Circle, noted, “We have spent 2+ years engaging with Japan’s regulators, major industry players, strategic partners, banking partners and others to enable USDC for the Japanese market.”
Over the next three years, the banks plan to issue stablecoins totaling about $6.6 billion. The Progmat Coin platform enables instant and programmable transfers, reducing settlement risks and lowering transaction costs. This system aims to improve the efficiency of both domestic and international corporate payments compared to traditional wire transfers.
Potential uses include cross-border corporate payments, sending funds to students abroad, and accessing decentralized finance opportunities. This collaboration signals a significant shift in Japan’s traditional banking approach to digital currencies and may influence broader adoption of tokenized fiat money.
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