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Japan’s big 3 banks to use stablecoins, Swift for cross border payments
September 05, 2024
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Japan’s big 3 banks, MUFG, SMBC and Mizuho are involved with with a cross border payment system, Project Pax, that aims to use stablecoins instead of correspondent banks. However, in order to ensure that corporate customers can trigger trade payments in the conventional manner via their banks, Swift payment messages will be integrated with the stablecoin system, which is based on Progmat. Hence, the clients don’t touch the stablecoins.

Given the efficiencies of stablecoin payments, the aim is to support 24/7 payments to address the G20’s goals for faster, cheaper, more transparent cross border payments. The total market capitalization of stablecoins has reached $170 billion with cryptocurrency as the primary use case, although they are also used for P2P payments.

Meanwhile, Progmat is a DLT-based tokenization network founded by MUFG, in which Mizuho and SMBC are joint venture partners alongside other institutions. Additionally, there’s a Progmat Coin solution which is primarily used for trust-based stablecoins, which have ring-fenced assets.

Progmat has been working with Datachain for some time on interoperability solutions to connect the permissioned Progmat network that uses the Corda enterprise blockchain with various permissionless networks. Those include Ethereum, Avalanche, Polygon and Cosmos. Additionally, Datachain founded TOKI a cross chain bridge that will run DeFi style liquidity pools for exchanging different currency and blockchain stablecoins. These solutions will be used as part of Project Pax, which is a joint venture between Progmat and Datachain.

Given the work that’s already been done, they aim to start testing a prototype ‘shortly’. The Pax members also plan to collaborate with other financial institutions in Japan and elsewhere, looking to go live by 2025.

Regarding the Swift integration, the messages will instruct payments to settle via blockchain networks. This is seen as addressing bank operational issues and removes the need for corporates to deal with the unfamiliar concepts of wallets and keys. Plus, it addresses AML and other compliance concerns.

Other stablecoin and DLT initiatives

Progmat already has several collaborations for stablecoin payments. Last year MUFG and DRW Cumberland started exploring JPY and USD stablecoins for institutional crypto settlement. This will involve the Japanese wallet provider Ginco issuing XJPY and XUSD stablecoins.

It also has a partnership with existing Japanese stablecoin JPYC and with Standage, a Japanese specialist in export settlement.

Stepping back, other DLT initiatives are targeting cross border payments. Of course, there is Ripple On Demand Liquidity solution that uses XRP as an intermediate currency and is used by remittance companies.

On the institutional side, JP Morgan, DBS Bank and Standard Chartered are involved in Partior that uses DLT to smooth the correspondent banking payment process. This enables banks that connect to the network to make cross border payments 24/7. While the client banks can make instant payments, the settlement banks still have to settle up between themselves, which they do in the conventional manner. Both SMBC and Mizuho have done some work with Partior.

More recently, the BIS launch Project Agorá which has similar goals to Partior. Its major advantage is the involvement of seven central banks that can provide wholesale CBDCs. This would sidestep Partior’s issue of the settlement banks needing to settle between themselves conventionally.

Project Pax is one of an ever expanding range of projects in the realm of stablecoins, tokenized deposits and DLT payments.

 

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US Dept of Commerce to publish GDP data on blockchain

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While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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List Of Cardano Wallets

Well-known and actively maintained wallets supporting the Cardano Blockchain are EternlTyphonVesprYoroiLaceADAliteNuFiDaedalusGeroLodeWalletCoin WalletADAWalletAtomicGem WalletTrust and Exodus.

Note that in case of issues, usually only queries relating to official wallets can be answered in Cardano groups across telegram/forum. You may need to consult with specific wallet support teams for third party wallets.

Tips

  • Its is important to ensure that you're in sole control of your wallet keys, and that the keys used can be restored via alternate wallet providers if a particular one is non-functional. Hence, put extra attention to Non-Custodial and Compatibility fields.
  • The score column below is strictly a count of checks against each feature listed, the impact of specific feature (and thus, score) is up to reader's descretion.
  • The table represents current state on mainnet network, any future roadmap activities are out-of-scope.
  • Info on individual fields can be found towards the end of the page.
  • Any field that shows partial support (eg: open-source field) does not score the point for that field.

Brief info on fields above

  • Non-Custodial: are wallets where payment as well as stake keys are not shared/reused by wallet provider, and funds can be transparently verified on explorer
  • Compatibility: If the wallet mnemonics/keys can easily (for non-technical user) be used outside of specific wallet provider in major other wallets
  • Stake Control: Freedom to elect stake pool for user to delegate to (in user-friendly way)
  • Transparent Support: Easy approachability of a public interactive - eg: discord/telegram - group (with non-anonymous users) who can help out with support. Twitter/Email supports do not count for a check
  • Voting: Ability to participate in Catalyst voting process
  • Hardware Wallet: Integration with atleast Ledger Nano device
  • Native Assets: Ability to view native assets that belong to wallet
  • dApp Integration: Ability to interact with dApps
  • Stability: represents whether there have been large number of users reporting missing tokens/balance due to wallet backend being out of sync
  • Testnets Support: Ability to easily (for end-user) open wallets in atleast one of the cardano testnet networks
  • Custom Backend Support: Ability to elect a custom backend URL for selecting alternate way to submit transactions transactions created on client machines
  • Single/Multi Address Mode: Ability to use/import Single as well as Multiple Address modes for a wallet
  • Mobile App: Availability on atleast one of the popular mobile platforms
  • Desktop (app,extension,web): Ways to open wallet app on desktop PCs
  • Open Source: Whether the complete wallet (all components) are open source and can be run independently.

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XLM: GDMJF2OCHN3NNNX4T4F6POPBTXK23GTNSNQWUMIVKESTHMQM7XDYAIZT
XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

 

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