2023-07-07 23:31:18
© Reuters. Banks of Japan team up to launch stablecoins in Cosmos
CriptoFácil – The Japanese company TOKI, known as a provider of bridges between blockchains (cross-chain) and partner of Progmat, announced a collaboration with Noble, a protocol for issuing tokens. The goal of this partnership is to bring fully collateralized stablecoins to the ecosystem.
Progmat, an initiative of Mitsubishi UFJ Trust and Banking (MUFG), Japan’s largest bank, is backed by more than 200 companies across the country, including major Japanese banks such as SMBC and Mizuho (NYSE:). The Japan Exchange Group (JPX) is also involved in the project.
Motoki Yoshida, Marketing Manager at TOKI, revealed that Progmat is currently engaged in building a platform that will allow banks and regulated financial institutions to issue their own stablecoins.
“The basic architecture calls for financial institutions interested in issuing stablecoins to deposit a corresponding amount of fiat money in the MUFG trust bank. Progmat then issues an equivalent amount of stablecoins,” explained Yoshida.
Japan has been actively moving into the cryptocurrency scene, with the recent enactment of the stablecoin law, also known as the Payment Service Law, which took effect on June 1, 2023. The law stipulates that all issued stablecoins must be pegged to or other legal tender.
Stablecoins in Japan
In light of this legislation, Yoshida stated that “stablecoins utilizing Progmat are expected to be issued in early 2024. TOKI has partnered with MUFG to bring Japanese stablecoins to public blockchains and provide a cross-chain infrastructure that utilizes these stablecoins.”
Initially, these stablecoins will be available on Cosmos IBC, but the TOKI team plans that eventually these stablecoins can be exchanged between blockchains for stablecoins on and used for lending.
The issuance of Japanese stablecoins on Noble is expected in the spring of 2024. TOKI, in turn, plans to launch its mainnet in the fourth quarter of this year. The initiative marks an important step towards the integration of blockchain into Japan’s financial system, strengthening the country’s position in the global cryptocurrency scene.
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