Japanese Banking Giant MUFG to Deploy Stablecoins on Public Blockchains

Mitsubishi UFJ Financial Group (MUFG), the largest slope successful Japan, announced its plans to deploy and administer bank-backed stablecoins connected antithetic nationalist blockchains. The Japanese slope has partnered with Datachain, a blockchain interoperability company, and Toki, a cross-chain bridge, to let the interoperation of these licensed stablecoins on respective blockchains utilizing its Progmat Coin protocol.

MUFG Presents Technical Partnership for the Issuance of Stablecoins

MUFG has announced that it plans to deploy stablecoins connected apical of nationalist blockchains. The bank, which held $776 cardinal successful assets nether absorption (AUM) by 2020, is partnering with Datachain, a blockchain interoperability company, and Toki, a cross-chain bridge.

The announcement of MUFG comes aft the revised funds’ colony instrumentality passed successful 2022 came to instrumentality effect connected Thursday to let fiscal institutions to contented stablecoins. MUFG volition usage its in-house developer “Progmat Coin” level for this. Progmat Coin is simply a protocol intended to facilitate the settlements of security-based products with extended capabilities to negociate cryptocurrency and embedded concern usage cases.

To further facilitate the transactions made with these unchangeable assets, the slope volition usage the services of Toki, a startup that precocious came retired of stealth mode. Toki volition let transactions of these assets betwixt nationalist blockchains, including Ethereum, Cosmos, Avalanche, and Polygon.

Among the usage cases considered are cross-chain swaps, allowing for the speech of assets among antithetic chains, cross-chain payments, and cross-chain lending, allowing the idiosyncratic to leverage respective lending protocols successful immoderate of the mentioned blockchains.

MUFG partnered with Coinbase to motorboat fiscal services successful the state successful 2021.

Stablecoin Demand Expected to Grow successful Japan

The lifting of a overseas bank-issued stablecoin prohibition past December opens a marketplace expected to person organization demand. Much of this request mightiness come from institutions that could spot the entreaty of missing payments extracurricular of the banking assemblage owed to the fees collected, portion individuals tin transact up to $715 escaped of charge.

Using these stablecoin-based outgo rails volition let institutions to sidestep the banking strategy and get faster settlements by paying ligament fees expected to beryllium cheaper than the fees charged by accepted companies.

Not lone MUFG is jumping to get a portion of this caller market. Other Japanese banks person besides announced stablecoin initiatives. Minha Bank, a integer bank, partnered with Tokyo Kiraboshi Financial Group and Shikoku Bank to motorboat their stablecoin utilizing G.U. Technologies’ platform.

What bash you deliberation astir MUFG issuing stablecoins successful its in-house developed “Progmat Coin” platform? Tell america successful the comments conception below.