- Stablecoins to be issued on public blockchains
- Work is in early stages
- No launch date announced
One of Japan’s largest banks, MUFG, plans to issue bank-backed stabelcoins. The statement says the Progmat Coin solution will be used to issue bank-backed stablecoins on several public blockchains, including Ethereum, Avalanche, Cosmos and Polygon.
Progmat Coin is designed to support the issuance of stackablecoins by various trust banks, not just MUFG. New legislation was introduced yesterday that allows Japanese trust banks to issue their own Stablecoins.
The bank is also partnering with TOKI, a public blockchain bridge solution that will provide this by creating liquidity pools with Progmat coins.
This solution is primarily aimed at users from Japan. It is not yet known whether users will need to undergo “KYC” verification in order to hold Stablecoins.
Security tokens and useful tokens are also available on the Progmat platform, particularly some that may have cross-bridge links. MUFG was the founder of the Progmat platform, but it is now evolving into a joint venture backed by the country’s leading stock exchange operator JPX, Mizuho, SMBC, SBI and others.
In April, Societe Generale became the first system bank to issue a steblecoin called EUR CoinVertible on a public blockchain. Although the initial issue was 10 million euros, no transactions have yet been made. Also in April, Brazilian investment bank BTG Pactual issued a stabelcoin pegged to the U.S. dollar.