Mitsubishi UFJ Trust and Banking Partners with Datachain and Soramitsu for Smooth Transfer of Stablecoins in Japan
Mitsubishi UFJ Trust and Banking Corporation, one of Japan’s largest banks, has announced a new technical partnership with blockchain firms Datachain and Soramitsu. The goal of the partnership is to facilitate smooth mutual transfers and exchanges between various stablecoins scheduled to be issued in Japan.
The partnership will utilize various stablecoins issued using the stablecoin issuance and management platform “Progmat Coin” led by Mitsubishi UFJ Trust and Banking, as well as the open-source blockchain platform Hyperledger Iroha, which Soramitsu contributes to development. Demonstrations will be conducted assuming regional digital currencies that are being considered by regional banks.
Japan became the first country in the world to define stablecoins as “electronic payment methods” under the revised Payment Services Act in 2022, with the bill set to be enforced in 2023. This initiative will help to facilitate smooth mutual transfers and exchanges between the wide variety of stablecoins and regional digital currencies that are scheduled to be issued by various banks in the future.
The partnership will also explore ways to improve the efficiency of cross-border remittances and reduce fees through mutual transfers and exchanges with overseas CBDCs.
In order to realize mutual transfers of multiple stablecoins and digital money on different blockchains such as Corda and Hyperledger Iroha, the partnership will leverage technologies to interconnect both blockchains and execute transactions on both blockchains simultaneously. These connections will include “YUI,” a blockchain interoperability project led by Datachain in research and development, “IBC,” a messaging protocol adopted by YUI, and middleware such as “LCP” that enables interoperability.
Stablecoins have the potential to revolutionize international remittances, micropayments, and the settlement of digital assets such as securities and NFTs. By connecting different blockchains in a safe and practical way, this partnership aims to build advanced use cases for stablecoins and create a financial infrastructure that can be used globally.
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