Mitsubishi UFJ to launch stablecoin platform in 2024.
The banking giant Mitsubishi UFJ from Japan has announced that it will launch a platform for stablecoin issuance and interoperability across different chains next year.
In an official statement, Mitsubishi UFJ said that it will collaborate with a company based in Tokyo named Datachain to create a “cross-chain infrastructure for stablecoins.”
The pilot project for this initiative was started by Mitsubishi UFJ in March of this year.
Toki, a Dubai-based company, will create a “liquidity pool” for each of the blockchain networks that the platform handles.
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The companies have announced that they will develop a “stablecoin issuance management platform” called Progmat Coin.
The target public blockchain networks for the platform include Ethereum, Cosmos, Avalanche, and Polygon, but they plan to expand to other blockchain networks in the future.
This announcement comes after a new stablecoin-related legal amendment was introduced in Japan, which effectively lifts a long-standing ban on stablecoin issuance for Japanese firms.
Mitsubishi UFJ has previously announced plans to release its own coin, but in recent months, it has been focused on blockchain interoperability solutions.
The Mitsubishi UFJ-led project is not just for domestic use, as the firms claim that they will launch a “cross-chain bridge that can be used globally.”
The platform is expected to be launched in the second quarter of 2024, and it will have stablecoin issuance functions. The companies say that the platform will allow for cross-chain swaps, lending, and payments. They also hope to create issuance options for non-fungible tokens (NFTs) as well as security tokens.
Toki has said that “this marks a significant milestone in integrating Japanese real-world assets into the crypto sphere.”
Mitsubishi UFJ’s Stablecoin Interoperability Project – Not Just for Japan?
The Mitsubishi UFJ-led project is not just for domestic use, the firms claimed.
They spoke of launching a “cross-chain bridge that can be used globally.”
The companies said they were aiming to launch the platform “in the second quarter of 2024.”
And the bank added that the platform would have stablecoin issuance functions.
The companies say the platform will allow for cross-chain swaps, lending, and payments.
The firms also hope to create issuance options for non-fungible tokens (NFTs) as well as security tokens.
In Toki’s own release, the firm wrote of the development:
“This marks a significant milestone in integrating Japanese real world assets into the crypto sphere. Exciting times ahead.”