- The Japanese government lifted the prolonged ban on Stablecoin recently. This became a big opportunity for megabank Mitsubishi UFJ to launch its Stable issuance platform.
The Japanese banking behemoth Mitsubishi UFJ is geared up to set its feet in the crypto domain. In a recent announcement, the firm said that it is going to roll out a platform to address cross-chain stablecoin issuance and interoperability.
Tying up with domestic & international firms
As per the statement, they’ll launch the platform next year. To build a cross-chain infrastructure for stablecoins, it will team up with Datachain, another Tokyo-based company.
Moreover, the bank is partnering with off-shore firms to ensure that it’s leaving no stone unturned in achieving high functionality and unmatched security in its operations. It has tied up with a Dubai-based firm called Toki which will establish a liquidity pool for every blockchain network that the platform will handle.
In a joint collaboration, the companies will develop a stablecoin issuance management platform which would be known as Progmat Coin.
Focused on making technology more utile
It would deploy a number of target public blockchain networks such as Polygon, Ethereum, Avalanche, and Cosmos. Also, the firms plan to expand its operations while including more protocols in the future.
Mitsubishi’s initiative comes days after Japan made amendments to its stablecoin-related legal policies. The new ruling lifted a long-standing ban on stablecoin issuance in the island nation.
As a consequence, several trust banks are now willing to launch their stablecoins. Moreover, most of them intend to develop these coins for international trade.
Interestingly, it’s not the first time when Mitsubishi has tried to release a coin of its own. However, the bank has been more focused on solving blockchain interoperability issues.
And as the stablecoin has got a new lease on life, various banks are now chalking up the plan to integrate blockchain back into their ventures. But without a bridge-type solution, the inter-network transactions may not be very successful.
Taking Stablecoin Beyond Japan
The bank claimed that this Stablecoin project is not just for Japan, it can be used globally by different businesses.
In fact, it said that its first cross-chain platform which would empower various enterprises will be ready by the second quarter of 2024. The platform will also have the stablecoin issuance function along with cross-chain swaps, lendings, and payments.
The firms involved in the venture are hopeful that the platform will entertain the issuance of security tokens as well as non-fungible tokens.
In a public statement, Toki said that it was a landmark moment in the history Japanese crypto market.
Conclusion
The Stablecoin revival definitely indicates good times to come for the crypto sphere in Japan and the whole world. The project would hopefully play a significant role in making Stablecoins more business-friendly. On the other hand, it would be the scope of usage of this unique digital asset.
