MUFG Bank, Mizuho Financial Group, and SMBC, three of the largest financial institutions in Japan, plan to test cross-border stablecoin payments by utilizing SWIFT’s API.
As part of “Project Pax,” a collaborative effort between Progmat and Datachain, three of the biggest financial institutions in Japan, Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group, are getting ready to test cross-border stablecoin payments.
Datachain announced on September 5th in a blog post that the transfer platform will use SWIFT’s API to transform how the current global remittance market operates.
The project aims to reduce bank operating expenses while leveraging stablecoins for round-the-clock international transactions. Datachain:
Project Pax’s cross-border transfer platform will utilize Swift’s existing API framework for banks to instruct Progmat to settle on blockchain networks, addressing AML/CFT, regulatory compliance, and operational setup challenges, while also considering the difficulties businesses face in using wallets.”
Transfers between various blockchains via Inter-Blockchain Communication protocols will be possible during the testing.
Japanese Banks Focus on Stablecoin Market
According to Datachain, the ultimate objective is to develop a platform that will allow “faster and more cost-effective international transfers without needing to be overly conscious of the presence of stablecoins or blockchain technology” for enterprise users.
Progmat and Datachain concentrate on creating stablecoin infrastructure and are important participants in Japan’s changing financial scene.
Supported by MUFG, Progmat makes it easier to issue stablecoins that comply with regulations on blockchains like Polygon and Ethereum.
At the same time, Datachain—which also received funding from MUFG—offers cross-chain features that make transferring money between different networks easier.
With scalability as its primary goal, the project is anticipated to be fully commercialized by 2025. However, the exact dates are still unknown.
