Japan’s Largest Banks Collaborate to Introduce Stablecoins to Cosmos

TL;DR Breakdown

  • Partnership: TOKI, Noble, and Progmat, along with major Japanese banks, are collaborating to introduce fully collateralized Japanese stablecoins to the Cosmos ecosystem.
  • Cosmos Integration: The stablecoins will initially be available on the Cosmos Inter-Blockchain Communication (IBC) protocol.

Description

Japan, known for its technological advancements and progressive regulatory environment, is making significant strides in the cryptocurrency landscape. In a groundbreaking partnership, the country’s largest banks have joined forces to bring stablecoins to the Cosmos ecosystem. This collaboration involves TOKI, a prominent cross-chain bridge provider and partner of Progmat, and Noble, a token issuance protocol. … Read more

Japan, known for its technological advancements and progressive regulatory environment, is making significant strides in the cryptocurrency landscape. In a groundbreaking partnership, the country’s largest banks have joined forces to bring stablecoins to the Cosmos ecosystem. This collaboration involves TOKI, a prominent cross-chain bridge provider and partner of Progmat, and Noble, a token issuance protocol. Together, they aim to introduce fully collateralized Japanese stablecoins to the Cosmos network, offering a secure and regulated means of digital asset transactions.

The partnership between TOKI, Noble, and Progmat 

Japan’s financial landscape is set to witness a groundbreaking collaboration as the country’s largest banks join forces to bring stablecoins to the Cosmos ecosystem. TOKI, a prominent cross-chain bridge provider and partner of Progmat, will team up with Noble, a token issuance protocol. Together, they aim to introduce fully collateralized Japanese stablecoins to the Cosmos network.

This partnership between TOKI, Noble, and Progmat represents a significant step towards bridging traditional finance with the emerging world of decentralized cryptocurrencies, fostering innovation and driving the adoption of stablecoins in Japan and beyond.

Stablecoin Issuance in Collaboration with Mitsubishi and Banking

Progmat, a project spearheaded by Mitsubishi UFJ Trust and Banking (MUFG), Japan’s leading bank, has garnered support from over 200 Japanese companies, including prominent financial institutions like SMBC and Mizuho. The Japan Exchange Group (JPX) is also actively involved in this ambitious endeavor. Progmat’s platform aims to empower banks and regulated financial institutions to issue their own stablecoins.

The foundation of Progmat’s architecture lies in the depositing of an equivalent amount of fiat currency by interested financial institutions with MUFG’s trust bank. In turn, Progmat issues an equal value of stablecoins. Notably, the funds in the trust bank are structured to be bankruptcy-remote, ensuring the utmost security for stablecoin use on public blockchains.

Japanese Stablecoin Integration on Cosmos and Future Prospects

With Japan recently enacting a stablecoin law, known as the Payment Service Act, on June 1, 2023, the country has taken significant strides in the cryptocurrency domain. According to the law, all stablecoins issued must be pegged to the yen or another legal tender. Given this regulatory environment, stablecoins utilizing Progmat’s platform are projected to be launched in early 2024. TOKI, in collaboration with MUFG, plans to introduce Japanese stablecoins to public chains and establish a cross-chain infrastructure utilizing these stablecoins.

The TOKI and Noble teams are actively collaborating with Progmat to bring the Japanese stablecoin vision to life. Initially, the stablecoins will be available on the Cosmos Inter-Blockchain Communication (IBC) protocol. However, the TOKI team envisions a future where these stablecoins can be seamlessly swapped cross-chain with Ethereum‘s stablecoins, facilitating cross-chain lending opportunities.

The launch of Japanese stablecoins on the Noble platform is scheduled for the spring of 2024, while TOKI plans to unveil its mainnet in the fourth quarter of this year, solidifying its position as a reliable cross-chain bridge provider.

Conclusion

The partnership between TOKI, Noble, and Progmat marks a significant milestone in the adoption and integration of stablecoins within the Japanese financial sector. With the support of major banks and regulatory compliance, the collaboration sets the stage for the introduction of fully collateralized Japanese stablecoins to the Cosmos ecosystem. As the ecosystem expands and evolves, these stablecoins may find utility beyond the Cosmos network, facilitating cross-chain lending and interoperability with Ethereum. The implementation of the stablecoin law in Japan signifies the country’s commitment to fostering innovation in the blockchain and cryptocurrency space while ensuring a secure and regulated environment for stablecoin usage.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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