The post What is Project Pax? Japan’s Megabanks Launch Stablecoin Pilot appeared first on Coinpedia Fintech News

Japan’s three major banks—MUFG, SMBC, and Mizuho—have announced a pilot program for a cross-border stablecoin transfer platform called “Project Pax.” This initiative aims to speed up and improve the efficiency of international business transactions. The pilot will be conducted in collaboration with blockchain firms Progmat, Datachain, and TOKI, and could see participation from more global banks in the future.

The platform will use stablecoins issued by Progmat, a blockchain startup backed by the megabanks, SBI Holdings, and Japan Exchange Group. Project Pax aims to facilitate cross-chain transactions using SWIFT’s API framework to settle payments on blockchain networks. This will help address compliance challenges like anti-money laundering and reduce the high costs associated with traditional fiat transfers.

Why Progmat? 

Progmat’s regulated stablecoin is quickly becoming popular as the first of its kind to ensure legal compliance and meet tax and accounting standards. Unlike most current stablecoins, which are largely used in crypto-specific applications, Progmat is designed for broader use in the enterprise sector, offering a safer and more secure option for cross-border transactions.

Looking Ahead: What’s Next for Project Pax?

The pilot test for Project Pax is expected to launch soon, with full commercialization targeted for 2025. The platform will integrate regulated stablecoins with existing cross-border messaging frameworks to enable faster transactions. It will also support stablecoins denominated in major fiat currencies like JPY, USD, and EUR, providing flexibility for both domestic and international use.

This initiative represents a significant step forward in global financial operations, setting the stage for wider adoption of blockchain technology in traditional banking.

Also Check Out: UK FCA Rejects 87% of Crypto Firm Applications

The future of finance is here, and it’s powered by stablecoins.

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