Japan Major Banks Launch Project Pax: A Cross-Border Stablecoin Transfer Trial

Japan Major Banks- Cross-Border Stablecoin Testing Begins: Japan’s Top Banks Pilot Project Pax

Japan Major Banks– Japan’s three largest banks—MUFG, SMBC, and Mizuho—are set to trial an innovative cross-border stablecoin transfer platform aimed at enhancing international settlement speed for enterprises. This ambitious initiative, known as Project Pax, seeks to streamline global financial transactions using blockchain technology.

Project Pax: Revolutionizing International Settlements

The pilot test of Project Pax will utilize stablecoins issued through Progmat, a blockchain startup supported by MUFG, SMBC, Mizuho, SBI Holdings, and the Japan Exchange Group. The collaboration involves Progmat, Datachain, and TOKI, which will oversee the testing of cross-chain transactions to validate the platform’s effectiveness.

Leveraging Existing SWIFT API for Blockchain Integration

To facilitate seamless cross-border transfers, Project Pax will incorporate SWIFT’s existing API framework. This integration will allow banks to direct Progmat to perform transactions on blockchain networks, potentially addressing issues related to anti-money laundering and regulatory compliance. According to the project, this approach will help financial institutions eliminate redundant operations associated with fiat currency transfers and reduce investment costs.

Commercialization Goals and Future Plans

Project Pax is set to kick off with a prototype, with the goal of commercializing the platform by 2025. The initiative aims to combine regulated stablecoins with secure cross-chain messaging standards, creating a system that enables rapid cross-border settlements comparable to internet speeds. This innovative approach is expected to transform how enterprises handle international financial transactions.

Progmat Coin: A New Era for Stablecoins

Progmat, backed by major financial institutions in Japan, has launched its Progmat Coin stablecoin platform. This platform allows for the issuance of stablecoins in major fiat currencies such as JPY, USD, and EUR, offering flexibility for both domestic and international use. The introduction of Progmat Coin is expected to facilitate broader adoption of stablecoins and enhance their functionality in global financial markets.

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