3 Japanese Megabanks to Trial Cross-Border Stablecoin Transfer for Faster Settlements
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Japan’s top three megabanks are launching a pilot project aimed at speeding up international settlements using stablecoins.
The initiative, called “Project Pax,” will involve stablecoins issued by Progmat, a blockchain platform supported by SBI Holdings and Japan Exchange Group, the firm said in a recent press release.
The banks involved include Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho.
The trial, which also involves blockchain companies Datachain and TOKI, will explore the use of cross-chain technology for faster and more efficient transactions.
It aims to integrate SWIFT’s API framework with blockchain networks, allowing banks to streamline processes and address compliance issues such as anti-money laundering.
According to the project, this integration can reduce operational redundancy and investment costs in fiat currency transfers.
Japan’s big 3 banks, MUFG, SMBC and Mizuho are involved with a cross-border payment system, Project Pax, that aims to use stablecoins instead of correspondent banks.
Project PAX going live with SWIFT integrated Blockchains by 2025.
