Japan’s Biggest Bank to Release Yen-Pegged Stablecoin in 2023

  • Called “Progmacoin”, the new stablecoin will be designed to save millions of dollars by making the settlement process instantaneous.
  • It will first be used for settlement of digital securities on the upcoming SBI and SMBC digital exchange, set to go live later this year.
Mitsubishi UFJ

A sign in front of the head office of Mitsubishi UFJ Bank in Tokyo.
Ned Snowman / Shutterstock

The trust banking arm of Japan’s largest financial institutions, Mitsubishi UFJ, is planning to launch a yen-backed stablecoin as early as 2023, Nikkei reported on 7 February.

According to the publication, Mitsubishi UFJ Trust and Banking aims to use the new stablecoin, dubbed “Progmacoin”, as means of payment to enable faster settlement of security transactions. The firm is hoping to save millions of dollars by making the settlement process, which currently takes a couple of days to complete, instantaneous.

The yen-pegged stablecoin will reportedly be used first in the settlement of digital securities on the SBI and SMBC digital exchange, which is set to go live later this year. The platform will use blockchain technology for trading non-traditional securities, such as real estate and art. Through the use of a stablecoin settlement layer, the bank will accelerate the fund delivery of such trades, while also improving Japan’s tokenized securities market.

The news of the stablecoin come at a time where Japan is trying to enact its revised Settlements and Payment System Act, which is designed to simplify fund settlements across financial institutions and banks. Back in December, Nikkei also reported that Japan’s banking regulator was ready to introduce a new legislation that would limit the issuance of stablecoins by private companies, but make it easier for banks and other financial institutions to do so.

While Mitsubishi UFJ Trust and Banking is aiming for a 2023 launch, Japanese trading house Mitsui has scheduled the release of its own digital asset for this month. Called ZipangCoin (ZPG), the asset will be linked to the price of gold in Japanese yen, with each token being equal to the value of one gram of gold.

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