In a recent announcement, three Japanese 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 pilot is being conducted in collaboration with blockchain companies Progmat, Datachain, and TOKI, with the possibility of more global banks participating.
The platform will use stablecoins issued through Progmat, a blockchain startup backed by the mega banks, along with SBI Holdings and Japan Exchange Group. The platform’s main goal is to facilitate cross-chain transactions, using SWIFT’s API framework to settle payments across 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 acceptance as the first enterprise-ready stablecoin that ensures legal compliance and meets tax and accounting standards. Unlike most current stablecoins, which are mainly used in web3 or crypto-specific applications, Progmat aims to expand its use to the enterprise sector. Moreover, it is safe and secure for a cross-border transaction.
Commercialization by 2025
The pilot test is expected to begin soon, with full commercialization planned 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 such as JPY, USD, and EUR, providing greater flexibility for both domestic and international use.
