Japanese Megabank Mitsubishi UFJ to Launch Stablecoin Issuance Platform in 2024
The Japanese banking giant Mitsubishi UFJ says it will launch a cross-chain stablecoin issuance and interoperability platform next year.
In an official Mitsubishi UFJ announcement, the firm stated that it would work with a Tokyo-based company named Datachain to “build cross-chain infrastructure for stablecoins.”
Mitsubishi UFJ began piloting the project back in March.
A company named Toki, which is based in Dubai, will “establish a liquidity pool” for each of the blockchain networks the platform handles.
The companies said that they would develop a “stablecoin issuance management platform” named Progmat Coin.
“Target public blockchain networks” for the platform “include Ethereum, Cosmos, Avalanche, and Polygon.”
But the companies said they “plan to expand to other blockchain [networks] in the future.”
The move comes just days after a new stablecoin-related legal amendment came into force in Japan.
The amendment effectively lifts a long-standing ban on stablecoin issuance for Japanese firms.
Several trust banks are thought to be keen to launch stablecoins as a result.
And many think these coins could be used in international trade.
Mitsubishi UFJ has previously unveiled plans to release a coin of its own.
But in more recent months, the bank has focused on blockchain interoperability solutions.
As Japanese banks have begun drawing up their stablecoin plans, they appear to be making use of various blockchain solutions.
Without a bridge-type solution, this could mean that inter-network transactions could prove problematic.
The Mitsubishi UFJ-led project is not just for domestic use, the firms claimed.
They spoke of launching a “cross-chain bridge that can be used globally.”
The companies said they were aiming to launch the platform “in the
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