Mitsubishi UFJ Bank Takes a Step Towards Stablecoin Interoperability with Pilot Launch

Mitsubishi UFJ Financial Group, one of Japan’s largest banks, has partnered with blockchain companies Datachain and Soramitsu, and platform Progmat Coin to launch a stablecoin interoperability pilot. The project aims to create a system for seamless transfers and exchanges between various stablecoins to be launched in Japan, and it will use several Datachain-developed interconnection solutions to link different blockchains. The new pilot solution will increase efficiency and reduce fees for inter-bank, inter-company, and interpersonal remittances when using stablecoins. This initiative comes after Japanese lawmakers voted in favor of stablecoin regulation clauses inserted into the revised Payment Services Act, which will allow banks to launch their own fiat-pegged coins on blockchain networks. The pilot will also explore interoperability solutions for overseas CBDCs and work towards creating a financial infrastructure that can be used on a global scale