Japan Collaborates to Launch XJPY, XUSD Stablecoins in 2024

Japan is witnessing the development of the Progmat Coin ecosystem. Progmat and Mitsubishi U.J. Financial Group (MUFG) are collaborating with a market maker, wallet provider, and cryptocurrency exchanges to achieve the June 2024 introduction of two stablecoins.

Hospitium, MUFG, and Progmat Coin, a stablecoin platform, have initiated an investigation into the possibility of releasing XJPY and XUSD stablecoins, respectively, according to a statement by Progmat.

This is beyond the scope of the platform’s capability to facilitate the issuance of stablecoins.

Other crypto asset-related companies are encouraged to participate, and liquidity provider Cumberland and cryptocurrency exchanges Bitbank and Mercoin are also involved in Progmat’s strategies.

A collaborative research project between Binance Japan and MUFG on the issuance of stablecoins pegged to different currencies was declared in September.

With the XUSD stablecoin designated for cross-border transactions, the XJPY and XUSD stablecoins will aim to increase the efficacy of settlements between crypto asset exchanges.

The Progmat system will eliminate the delays caused by the fact that Japanese cryptocurrency exchanges utilize banks for settlement, as reported by the Tokyo Fin Tech blog.

In collaboration with other major Japanese institutions, MUFG unveiled the Progmat platform in February 2022. Since its implementation in June 2023, it has been governed by the revised Payment Services Act.

Three different categories of stablecoins are specified in the amended act. Progmat would support the “trust” type coin, which trust institutions issue.

When institutions issue stablecoins on Ethereum, Polygon, Avalanche, and Cosmos, Progmat will be utilized, according to MUFG’s June announcement.

Progmat Coin schematic. Source: Medium

Stablecoins trading on Progmat will be subject to licensing before their introduction, as Japanese law restricts stablecoin issuance to banks only. While not in operation, Progmat Coin malfunctions.

For cross-border remittances to Asian countries utilizing both stablecoin and the central bank digital currency of Cambodia, the blockchain startup Soramitsu is investigating a new stablecoin exchange.

A stablecoin platform is reportedly being developed by the Tokyo-based startup G.U. Technologies.