Japan’s Big Banks Join Forces for Cross-Border Stablecoin Transfers
Japan’s financial giants are getting serious about stablecoins. MUFG, SMBC, and Mizuho, along with SBI Holdings and Japan Exchange Group, have teamed up to launch **Project Pax**, a pilot program for cross-border stablecoin transfers. This initiative aims to streamline international payments for businesses, making them faster and more efficient.
Project Pax will leverage stablecoins issued through Progmat, a blockchain startup backed by the participating banks. Progmat will collaborate with Datachain and TOKI to test cross-chain transactions, ensuring seamless interoperability between different blockchains.
To tackle regulatory hurdles, Project Pax plans to use SWIFT’s API framework, enabling banks to settle transactions on blockchain networks while complying with anti-money laundering and other regulations. This approach could potentially reduce operational redundancy and cut investment costs.
Project Pax will begin with a prototype and aims to be fully commercialized by 2025. The team believes that integrating regulated stablecoins with secure cross-chain messaging will enable near-instant cross-border settlements for businesses.
Progmat’s platform is designed to support the issuance of stablecoins in various fiat currencies, including JPY, USD, and EUR, for both domestic and international use. With major financial players backing the initiative, Project Pax could be a game changer for the future of cross-border payments.
