Cross-chain infrastructure of “progmacoin”
Mitsubishi UFJ Trust and Banking Corporation announced on the 2nd that it will partner with Datachain Co., Ltd. and TOKI FZCO to build a cross-chain infrastructure for stablecoins.
Mitsubishi UFJ Trust and Banking is leading the development of the stablecoin issuance management platform “Progmat Coin”. The cross-chain infrastructure announced this time is for stablecoins that use “progmacoins”.
On June 1st, the revised Fund Settlement Act came into force, allowing the issuance of stablecoins backed by legal tender in Japan.
In response to this, as soon as the intermediary obtains the necessary license, it is expected that stablecoins will be able to be issued and distributed on various public blockchains using “Plogmacoin” in the future.
Target public blockchains include Ethereum (ETH), Cosmos (ATOM), Avalanche (AVAX), and Polygon (MATIC). We plan to expand to other blockchains in the future.
connection: The revised Payment Services Act that came into effect on June 1 will enable the issuance of domestic stablecoins, which will also benefit multinational companies.
What is a stablecoin
A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike BTC, ETH, and XRP, which have volatility, their purpose is to maintain their value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.
Considering issuing NFTs and security tokens
Datachain, which is based in Tokyo, has a track record in research and development related to blockchain interoperability, and TOKI, which is based in Dubai, United Arab Emirates (UAE), is developing a cross-chain bridge that can be provided globally. there is
Mitsubishi UFJ Trust and Banking is expected to partner with both companies to build a cross-chain infrastructure and mainly provide the following functions. We are aiming to realize it in the second quarter of 2024.
- Cross-chain swaps (swapping between stablecoins on different chains)
- Cross-chain payments (settlements with stablecoins on different chains for NFTs, etc.)
- Cross-chain lending (perform stablecoin-powered transactions with lending protocols on different blockchains)
TOKI establishes a liquidity pool for each blockchain, and uses the cross-chain bridge solution “LCP” provided by Datachain and the communication standard “IBC” for transmitting tokens between different blockchains. to connect.
This is a mechanism that allows stablecoins provided by Japanese trust banks to be used for swaps, payments, loans, etc. across various blockchains.
In addition, TOKI explained that “Plogma Coin” aims to issue NFTs (non-fungible tokens) in the future as follows.
“Progmacoin” aims to issue not only stablecoins but also security tokens and NFTs that represent membership rights and traceability.
These areas will be important milestones in the integration of real-world assets into the cryptocurrency realm in Japan.
What is cross chain
It refers to the technology that straddles blockchains with different standards and specifications and connects them.