Mitsubishi UFJ Financial Group (MUFG) has launched its virtual currency project after a lot of research. It has launched a proprietary stablecoin project to seize the lead in stablecoin development. MUFG unveiled its “Progmat Coin” stablecoin platform on February 9. It is a blockchain-based system linked to the Japanese yen at a 1:1 ratio. MUGF is Japan’s largest financial giant and largest bank. The newly launched platform promises to provide a universal digital asset payment mechanism. It will allow cross-chain compatibility with a range of digital assets. It will also be compatible with Japan’s central bank digital currency (CBDC).
The Progmat Coin project is based on inputs and work by MUFG’s “ST Research Consortium”. The consortium was established in 2019 with an eye to developing security token standards. It has now been rebranded with the name of “Digital Asset Co-creation Consortium”. The consortium is now expanding its work beyond security tokens to include NFTs, crypto assets, and other areas.
A spokeswoman for MUFG informed that the MUFG is preparing to launch a stablecoin based on the Japanese yen as part of the initiative. The stablecoin will be launched in 2023. He added that this stablecoin initiative is distinct from Japan’s CBDC effort.
As per reports, the Japanese Financial Services Agency (JSA) is planning to introduce legislation in 2022 related to it. The legislation would limit stablecoin issuance to banks and wire transfer providers.