In a recent announcement, Japan’s three megabanks—MUFG, SMBC, and Mizuho—are launching a pilot program for a cross-border stablecoin transfer platform called “Project Pax.” The initiative aims to improve the speed and efficiency of international business settlements. The trial will be run in collaboration with blockchain firms Progmat, Datachain, and TOKI, with the potential for more global banks to participate.
The platform will use stablecoins issued through Progmat, a blockchain startup backed by the megabanks, along with SBI Holdings and Japan Exchange Group. The main goal of the platform is to facilitate cross-chain transactions, using SWIFT’s API framework to settle payments on blockchain networks. This will address compliance challenges, such as anti-money laundering while reducing operational costs associated with traditional fiat transfers.
Why Progmat?
Interestingly, Progmat’s regulated stablecoin is gaining adoption as the first enterprise-ready stablecoin that ensures legal compliance and meets tax and accounting standards. Unlike most current stablecoins, which are primarily used in web3 or crypto-specific applications, Progmat aims to extend its use into the enterprise sector. Moreover, it’s safe and secure for a cross-border transaction.
Commercialization by 2025
The pilot test is expected to launch soon, with full commercialization targeted for 2025. By integrating regulated stablecoins with existing cross-border messaging frameworks, Project Pax aims to enable faster cross-border transactions. The platform will allow stablecoins to be denominated in major fiat currencies like JPY, USD, and EUR, offering greater flexibility for both domestic and international use.
