Japan’s Major Banks to Test Cross-Border Stablecoin Transfer Platform
Japan’s top three banks—MUFG, SMBC, and Mizuho—are collaborating on “Project Pax,” a stablecoin platform for faster, cross-border payments using blockchain technology.
Key points:
- MUFG, SMBC, and Mizuho: Leading Japan’s stablecoin trial.
- Project Pax: A stablecoin platform for cross-border settlements.
- Blockchain firms involved: Progmat, Datachain, and TOKI.
- Launch expected in 2025: Aiming to commercialize the platform next year.
- Cost-effective & compliant: Using SWIFT’s API to reduce redundancy and address compliance.
Major Banks Take on Stablecoin Payments:
Japan’s three largest banks, MUFG, SMBC, and Mizuho, are preparing to trial a new cross-border stablecoin platform, named “Project Pax.”
The initiative aims to revolutionize international settlements, making them faster and more cost-efficient for enterprises worldwide. The platform will use stablecoins issued through Progmat, a blockchain startup with backing from these banks as well as SBI Holdings and Japan Exchange Group.
Project Pax, managed by Progmat, Datachain, and TOKI, will test cross-chain transactions. The trial will leverage SWIFT’s existing API framework, enabling banks to manage cross-border payments through blockchain technology.
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This approach not only simplifies the settlement process but also helps meet anti-money laundering regulations and reduces operational costs. The initiative seeks to minimize redundancy that typically occurs with fiat currency transfers, while cutting investment costs for financial institutions.
With a prototype already in development, the project aims to commercialize its platform by 2025. If successful, Project Pax could offer a significant boost to global enterprise transactions, enabling faster payments at the “speed of the internet.”
By incorporating regulated stablecoins in major fiat currencies like JPY, USD, and EUR, Project Pax is positioned to provide a more flexible, secure, and efficient solution for both domestic and international payments.
