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.

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.