Mitsubishi UFJ Financial Group (MUFG), the largest banking institution in Japan, announced on June 2 that its “Progmat Coin” platform would be used to launch the Japanese yen-pegged stablecoin. The announcement stated that the “Progmat Coin” which is currently used by MUFG to issue stablecoin would be utilized by multiple Japanese banks.
In a previous report, the Japanese regulatory agencies had drafted a bill to restrict the issuance of stablecoin by non-banking institutions. After undergoing a heated political exchange, Japan passed the bill into law, and was effective from June 1.
MUFG Progmat Coin Platfrom Set to Facilitate Stablecoin Issuance
The new regulation in Japan has created a friendly environment for banks to develop stablecoins. According to MUFG’s announcement the banking institution has agreed with relevant regulatory bodies to facilitate the issuing of the Japanese yen stablecoin.
It was reported that the Progmat Coin platform would be utilized in issuing the bank-backed stablecoins connected to the public blockchain such as the Ethereum, Avalanche, Cosmos, and Polygon networks.
MUFG plans to integrate other networks in the coming day to support the issuance of the stablecoin. The team behind the Progmat Coin incorporated revolutionary tools to enable the consumer to make crypto payments using stablecoins.
Also, most of the features on the Progmat Coin would support the Bank of Japan (BoJ) to distribute the central bank’s digital currency. Primarily at the initial development of the Progmat Coin the MUFG joint efforts with fast-growing tech firms Toki and Datachain.
Review of Japanese New Regulation on Cryptocurrency
Led by MUFG technical team the Toki and Datachain groups are currently working on developing an innovative bridge that will facilitate cross-chain transactions including lending and swapping services on the blockchain network.
In a recent publication, the MUFG team confirmed that the development of the new cross-chain network was in the preliminary stages. The MUFG team expects to launch the cross-chain tools in Q2 of 2023. Notably the cross-chain network under development aims at improving the interoperability and flexibility of the stablecoin issuance.
In 2022 the MUGF team invested in developing the Progmat Coin platform which would provide the user with an interoperable and crypto payment platform. At that time, the MUGF team leveraged their expertise to develop their digital Japanese yen backed by stablecoin.
The MUGF implicit moves inspired local banks in Japan such as Shikoku, Minna, and Tokyo Kiraboshi to support the issuance of stablecoin. In an interview with Nikkei Asia, the MUFG team withheld information on the banks set to utilize the Progmat Coin platform in stablecoin issuance.
Subsequently, Nikkei Asia reported that most trust banks in the region would utilize the G.U. technology stablecoin issuance platform. Irrespective of this, the Progmat Coin offers a secure platform for stablecoin issuance.The Progmat platform has supported the user to uphold compliance with the Japanese regulation.