Top Japanese Banks Test Cross-Border Stablecoin Transfers

Japan's major banks—MUFG, SMBC, and Mizuho—are gearing up to test a cross-border stablecoin transfer platform, aiming to speed up international payments for businesses.

The pilot, called “Project Pax,” will utilize stablecoins issued through Progmat, a blockchain startup supported by these banks, alongside SBI Holdings and Japan Exchange Group. Progmat will work with Datachain and TOKI to test cross-chain transactions.

The project plans to use SWIFT’s API framework to help banks settle on blockchain networks, addressing issues like anti-money laundering and compliance. This approach aims to reduce operational redundancy and cut investment costs.

Set to launch with a prototype, Project Pax aims for full commercialization by 2025. According to a blog post, the team highlighted that by integrating regulated stablecoins with secure cross-chain messaging, they are enabling near-instant cross-border settlements for enterprises.

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Backed by major financial players, Progmat’s stablecoin platform allows the issuance of stablecoins in various fiat currencies like JPY, USD, and EUR, for both domestic and international use.

Alexander Stefanov