Progmat stablecoin platform takes shape as wallet, liquidity providers join

Liquidity supplier Cumberland and crypto exchanges Bitbank and Mercoin likewise figure into the Progmat plans, and other crypto asset-related businesses are welcomed to join. Binance Japan announced in September that it was conducting a joint study with MUFG on the issuance of stablecoins pegged to different currencies.Related: Japan to enable startups to raise funds by issuing crypto instead of stocks: ReportThe XJPY and XUSD stablecoins will beintended to enhance the effectiveness of settlements in between crypto property exchanges, with XUSD for use in cross-border settlements. Japanese crypto exchanges utilize banks for settlement, according to the Tokyo Fin Tech blog site, triggering hold-ups that the Progmat system will eliminate.MUFG introduced the Progmat platform in February 2022 in a consortium with other big Japanese banks. It is regulated under the revised Payment Services Act that entered into effect in June 2023. The revised act offers three types of stablecoin. Progmat would support the “trust” type coin, provided by trust banks.Progmat Coin schematic. Source: MediumMUFG said in June that Progmat would be utilized for banks to release stablecoins on Ethereum, Polygon, Avalanche and Cosmos. Only banks are allowed to provide stablecoins under Japanese law, and stablecoins on Progmat will be needed to go through licensing ahead of launch.Progmat Coin is not operating in a vacuum. Blockchain startup Soramitsu is exploring a brand-new stablecoin exchange for cross-border payments to Asian countries utilizing Camboodias reserve bank digital currency in addition to stablecoin. Tokyo-based start-up G.U. Technologies is likewise reportedly developing a stablecoin platform.Magazine: Why Animism Gives Japanese Characters a NiFTy Head Start on the Blockchain

With a market maker, wallet service provider and cryptocurrency exchanges on board, Progmat and Mitsubishi UFJ Financial Group (MUFG) hope to introduce two stablecoins in the summertime of 2024. Stablecoin platform Progmat Coin, MUFG and wallet company Ginco have actually begun a study with the goal of providing a yen-denominated XJPY stablecoin and dollar-denominated XUSD stablecoin, Progmat stated in a declaration.

Other Questions People Ask

What role do liquidity providers play in the Progmat stablecoin platform takes shape as wallet, liquidity providers join?

Liquidity providers like Cumberland are crucial to the Progmat stablecoin platform as they ensure that there is sufficient liquidity for transactions involving the new stablecoins. Their participation helps facilitate smoother trading and settlement processes, particularly for the XJPY and XUSD stablecoins. This collaboration aims to eliminate delays currently experienced in crypto asset exchanges due to reliance on traditional banking systems.

How does the Progmat stablecoin platform address settlement delays in crypto transactions?

The Progmat stablecoin platform aims to enhance the efficiency of settlements between crypto asset exchanges by introducing stablecoins like XJPY and XUSD. Currently, Japanese crypto exchanges depend on banks for settlements, which can lead to significant delays. By utilizing the Progmat system, these delays are expected to be minimized, allowing for quicker and more reliable transactions in the crypto market.

What types of stablecoins will the Progmat platform support?

The Progmat platform will support three types of stablecoins as outlined by Japan's revised Payment Services Act, focusing on the "trust" type coin provided by trust banks. Specifically, it plans to introduce yen-denominated XJPY and dollar-denominated XUSD stablecoins. These stablecoins are designed to facilitate cross-border settlements and improve transaction efficiency within the crypto ecosystem.

What is the significance of MUFG's involvement in the Progmat stablecoin platform?

MUFG's involvement in the Progmat stablecoin platform is significant as it brings regulatory compliance and banking expertise to the initiative. As only banks are permitted to issue stablecoins under Japanese law, MUFG's participation ensures that the stablecoins will meet necessary licensing requirements before launch. This collaboration with other major banks also enhances the credibility and stability of the Progmat platform.

What future developments can we expect from the Progmat stablecoin platform?

Future developments for the Progmat stablecoin platform include the anticipated launch of XJPY and XUSD stablecoins in the summer of 2024. With a consortium of market makers, wallet service providers, and cryptocurrency exchanges collaborating, these stablecoins aim to streamline cross-border payments and improve settlement processes. Additionally, ongoing studies with partners like Ginco indicate a commitment to innovation and responsiveness to market needs.