Japan’s top tier bank issues stablecoin platform

Stablecoins are the government issued fiat pegged stable cryptocurrencies. These assets are in demand because of their less volatile nature. Recently, one of Japan’s top tier banks has introduced its stable crypto project after several years of digital currency development. Mitsubishi UFJ Financial Group (MUFG) is working hard to take the lead in stablecoin development, and launched a proprietary stable crypto coin project on Wednesday. It is unveiled that the latest cryptocurrency is called the Progmat Coin.

MUFG has issued Progmat Coin

On Wednesday, the largest financial group of Japan issued Progmat Coin. The stablecoin project is a blockchain-based system for issuing and managing the cryptocurrency pegged on a 1:1 ratio to the Japanese government issued yen.

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Progmat Coin project aims to enable a universal digital asset payment method while providing cross-chain interoperability with a range of other virtual currencies other than those issued with the latest coin. Moreover, the project also focuses on helping Japan’s central bank digital currency, digital yen.

MUFG’s stablecoin project is based on contributions

According to an official announcement, the Progmat Coin is based on contributions and work by MUFG’s ST Research Consortium that was established in 2019. The consortium’s goal was to develop standards around security tokens. Moreover, it is now being rebranded to the Digital Asset Co-creation Consortium.

MUFG’s consortium now aims to expand its scope of work beyond security tokens to other sectors like fiat pegged stablecoins, NFTs, cryptocurrencies, and others. As part of  the plan, MUFG also seeks to introduce yen-pegged stablecoin during 2023.

MUFG is working on stable coins since 2015

Following previous reports we have found that MUFG has been working on similar projects since near 2015. According to a spokesperson from the bank, the latest project is completely different from Japan’s major project, DCJPY. Notably,the initiative began a few months before and included MUFG, Mizuho, and Sumitomo to launch the digital coin by the next year.

However, the latest issuance news came following Japanese firms growing increasingly interested in issuing and managing crypto assets and stablecoin. Meanwhile, local news agency Nikkei Asia has published a report noting that Mitsui, trading hub, has been planning to issue a gold pegged-digital asset.