Japan’s Largest Bank Unveils Stablecoin Platform For Banks

Jai Pratap
June 3, 2023 Updated July 22, 2025
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MUFG Stablecoin

Japan’s largest bank Megabank Mitsubishi UFJ Financial Group (MUFG) has announced its stablecoin issuance platform Progmat Coin that would be used to issue local bank-backed stablecoins on multiple public blockchains.

The stablecoins will be issued on several blockchains, including Ethereum, Avalanche, Cosmos and Polygon.

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New law allows trust banks to issue stablecoins in Japan

As per the announcement, Progmat Coin is designed to support stablecoin issuance from various trust banks, not just MUFG. The new legislation that came into force starting this month, allows Japanese trust banks to issue stablecoins.

MUFG also revealed that it is working with blockchain interoperability startup DataChain. It is also collaborating with TOKI, a cross chain bridge solution for public blockchains based on DataChain’s technology. With this collaboration, the aim is to support public blockchain cross chain swaps, cross chain payments and cross chain lending. For example, the purchase of an NFT could be settled with a Progmat Coin on a different blockchain.

TOKI will run liquidity pools with Progmat Coins on multiple blockchains. TOKI plans to launch its bridge later this year and issue its own crypto token, the announcement noted.

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Progmat Coin gets backing from top stock exchange operators

MUFG had first announced its Progmat Coin in February last year, with the aim to provide a universal digital asset payment method for stablecoins, other crypto assets, and a Japanese CBDC.

The Progmat platform also supports security and utility tokens, with some of these potentially involving cross bridges in a similar manner. Numerous security tokens have already been issued. MUFG founded Progmat, but the platform is morphing into a joint venture with backing from the country’s main stock exchange operator JPX, Mizuho, SMBC, SBI and others.

Also Read: ChatGPT Under Radar Over Privacy Concerns In Japan

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you'll find him reading Russian literature or watching some Swedish movie.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.