Megabank Mitsubishi UFJ Financial Group (MUFG) has announced that its stablecoin issuance platform, “Progmat Coin,” will soon be utilized by Japanese banks to issue yen-pegged stablecoins on multiple public blockchains.
As a result of this month’s implementation of new regulations, Japanese banks have recently declared their intent to investigate or launch stablecoins.
Midway through 2022, the Japanese government passed a law prohibiting non-banking institutions from issuing stablecoins. The legislation went into effect on June 1, 2023.
MUFG announced on June 2 that the Progmat Coin would facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche, and Cosmos, with other networks to follow.
Additionally, MUFG disclosed that its blockchain technology and security partners, Toki and Datachain, are constructing a bridge to enable cross-chain transactions, lending, and swaps between the supported blockchains.
The bank anticipates the launch of the cross-chain infrastructure in the second quarter of 2022.
![MUFG Launches Progmat Coin MUFG Launches Progmat Coin](https://coinxposure.com/wp-content/uploads/2023/06/12ca38a9-39ca-4aef-8c36-cffff535be00-300x148.webp)
MUFG initially announced Progmat Coin in February 2022, aiming to provide an interoperable and “universal digital asset payment method” for stablecoins, other crypto assets, and even a central digital bank currency based in Japan.
MUFG has not disclosed which banks will be the first to use Progmat Coin; however, it confirmed at its 2022 announcement that it is launching its own Japanese yen-pegged stablecoin.
Nikkei Asia reported on June 1 that Shikoku Bank, Tokyo Kiraboshi, and Minna Bank all intend to issue stablecoins; however, it appears that they will not use the Progmat Coin platform.
According to the publication, these banks will utilize a stablecoin platform created by the Tokyo-based startup G.U. Technologies.