Japan's financial sector is experiencing a significant shift with the development of a shared stablecoin infrastructure for corporate payments. The initiative, launched by three major banks - Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group - aims to overhaul the current system of correspondent banking. This method has been criticized for its inefficiencies, leading to high fees and processing delays.
The stablecoin, built on Progmat Coin's blockchain platform, is designed to facilitate 24/7 real-time settlement at a lower cost than existing systems. The first user, Mitsubishi Corporation, is currently testing the stablecoin for internal transfers between its overseas subsidiaries.