[NEWS] Mitsubishi UFJ and Mizuho collaborate on stablecoin, aiming for practical use in 2024

It has been revealed that MUFG (Mitsubishi UFJ Financial Group) and Mizuho FG (Mizuho Financial Group) will collaborate in the stable coin field. The Nikkei Shimbun and other media reported on the 5th.

The two companies plan to issue stable coins using Progma, a digital asset issuance and management platform developed by Mitsubishi UFJ Trust and Banking Corporation, a subsidiary of MUFG, and use them for inter-company payments. The stable coins are expected to be issued as early as 2024 and put into practical use.

Also, according to reports, Mitsubishi UFJ Trust and Banking Corporation will establish a new company called "Progma" next month. The new company is expected to receive investments from the three megabank groups and NTT Data. With an eye on making Progma a "national infrastructure," major financial institutions are strengthening their collaboration.

Stable coins, whose value is backed by legal tender such as the Japanese yen, were designated as electronic payment methods when the revised Payment Services Act came into effect in June this year, paving the way for their issuance and distribution.

As a result, financial institutions such as banks and Web 3.0-related companies have declared their intention to enter the stablecoin field one after another. It is highly likely that both will be issued as early as 2024.

Stablecoins are attracting attention as a means to revolutionize existing payment networks. In particular, they are expected to be effective when used for payments between companies, where large amounts of funds are expected to be transferred under current legal regulations.

They are particularly compatible with trade payments, which have high fees and require a long time to transfer, and are expected to reduce the burden on businesses. Specifically, payments that previously took several days to complete can be made instantly by using stablecoins while keeping fees as low as possible.

Another advantage is that blockchain can be used to execute transactions accurately and ensure transparency.

Reference:Nihon Keizai Shimbun
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