Japan's largest bank MUFG has announced that it will launch native bank-backed stablecoins on multiple public blockchains, including Ethereum, Avalanche, Cosmos and Polygon, with its Progmat Coin solution.
The timeframe for the launch has yet to be confirmed as the work is still in an early stage.
Progmat Coin is designed to support stablecoin issuance from various trust banks, not just MUFG. Yesterday, new legislation went into effect allowing Japanese trust banks to issue stablecoins.
MUFG was working with blockchain interoperability startup DataChain. It also collaborates with TOKI, a cross-chain bridge solution for public blockchains based on DataChain's technology.
The goal here is to support public blockchain cross-chain swaps, cross-chain payments, and cross-chain loans. For example, the purchase of an NFT can be done with a Progmat Coin on a different blockchain.
TOKI will make this possible by running liquidity pools with Progmat Coins across multiple blockchains. TOKI was founded in Dubai in March this year by a DataChain executive and plans to launch its bridge and issue its own cryptocurrency later this year.
The solution is believed to be primarily focused on the Japanese market, and it is questioned whether users will need to comply with the know-your-customer standard (KYC) to hold stablecoins.
*Not investment advice.