Japanese banking giant Mitsubishi UFJ Financial Group (MUFG) has revealed its plans to deploy stablecoins on various public blockchains. The partnership includes blockchain interoperability firm Datachain and cross-chain bridge provider Toki. By utilizing its Progmat Coin protocol, MUFG aims to enable the interoperation of licensed stablecoins across multiple blockchains.

MUFG’s decision to deploy stablecoins on public blockchains follows the implementation of a revised funds settlement law in 2022. This law permits financial institutions to issue stablecoins. To accomplish this, MUFG will utilize its in-house developer platform called Progmat Coin, which is designed to facilitate the settlement of security-based products while also supporting cryptocurrency and embedded finance use cases.

Toki, a recently emerged startup, will assist MUFG in enhancing transaction capabilities with these stable assets. Toki enables asset transactions between various public blockchains, including Ethereum, Cosmos, Avalanche, and Polygon.

The deployment of stablecoins on public blockchains presents several potential use cases. These include cross-chain swaps, enabling the exchange of assets across different chains, cross-chain payments, and cross-chain lending, which allows users to leverage multiple lending protocols on the mentioned blockchains.

In 2021, MUFG collaborated with Coinbase to introduce financial services in Japan. This partnership highlights MUFG’s commitment to exploring innovative solutions and expanding its presence in the digital finance ecosystem.

Stay tuned to CoinTopper for more information.