Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank are set to trial a stablecoin platform aimed at facilitating cross-border transfers. The pilot project, called “Project Pax,” will utilize stablecoins issued by blockchain startup Progmat, backed by SBI Holdings and the Japan Exchange Group. The project will be operated by Progmat, Datachain, and TOKI to test cross-chain transactions.
The initiative plans to leverage SWIFT’s existing bank API framework to instruct Progmat to settle transactions on the blockchain network. This approach aims to address anti-money laundering and other compliance challenges. The project states, “This allows financial institutions to avoid operational redundancy in fiat currency transfers and minimize investment costs.” According to the statement, “Project Pax” will begin with a prototype, with the goal of commercializing the platform by 2025.
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