Japan Megabanks Launch Cross-Border Stablecoin Transfer Platform 'Project Pax”

In a recent announcement, Japan's three megabanks—MUFG, SMBC, and Mizuho—are launching a pilot program for a cross-border stablecoin transfer platform called “Project Pax.”

Three Japanese megabanks, namely MUFG, SMBC, and Mizuho, are collaborating on a pilot program to create a cross-border stablecoin transfer platform called "Project Pax." The initiative is designed to enhance the speed and efficiency of international business settlements.

The trial will involve cooperation with blockchain firms Progmat, Datachain, and TOKI. The platform will utilize stablecoins issued through Progmat, a blockchain startup supported by the megabanks, SBI Holdings, and Japan Exchange Group.

The platform aims to facilitate cross-chain transactions by leveraging SWIFT's API framework to settle payments on blockchain networks. This integration will address compliance challenges, such as anti-money laundering, while reducing operational costs associated with traditional fiat transfers.

Progmat's regulated stablecoin is gaining adoption as the first enterprise-ready stablecoin that ensures legal compliance and meets tax and accounting standards. Unlike most current stablecoins, which are primarily used in web3 or crypto-specific applications, Progmat aims to extend its use into the enterprise sector, making it suitable for cross-border transactions.

The pilot test is expected to launch soon, with full commercialization targeted for 2025. By integrating regulated stablecoins with existing cross-border messaging frameworks, Project Pax aims to enable faster cross-border transactions. The platform will allow stablecoins to be denominated in major fiat currencies like JPY, USD, and EUR, offering greater flexibility for both domestic and international use.

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