Japanese Megabank Mitsubishi UFJ Launches Stablecoin Interoperability Pilot
The Japanese megabank Mitsubishi UFJ Financial Group and domestic blockchain players say they have teamed up to launch a stablecoin interoperability pilot.
In a Mitsubishi UFJ press release, the firm’s trust and banking unit said it was partnering with the Tokyo-based blockchain developer Datachain.
It will also work with a platform called Progmat Coin and the developer Soramitsu.
The latter worked on the Cambodian central bank digital currency (CBDC), with a coin successfully released in 2020.
Mitsubishi UFJ Trust and Banking announced its "technical cooperation" on March 28 to create a system for "seamless transfers and exchanges" between various stablecoins to be launched in Japan.
The bank added that it would conduct a series of “demonstrations” using “regional digital currencies” that are currently “being considered for launch” at regional banks.
The pilot will make use of several Datachain-developed “interconnection” solutions.
These allow “different blockchains” to link.
The new pilot solution, the parties claimed, will allow parties to “boost efficiency” and “reduce fees for inter-bank, inter-company, and interpersonal remittances” when using stablecoins.
Last year, Japanese lawmakers voted in favor of stablecoin regulation clauses that have now been inserted into the revised Payment Services Act.
These clauses promulgate later this year. And they classify certain stablecoins as “electronic methods of payment” – effectively granting regulated stablecoins a legal status.
This development will allow banks to launch their own fiat-pegged coins on blockchain networks.
But as different banks are already working on a diverse range of blockchain protocols, interoperability-related questions have been raised.
The central Bank of
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