Japan's three largest banks, MUFG, SMBC and Mizuho, ​​will test a platform for cross-border stablecoin transfers as part of an initiative called Project Pax. Three blockchain companies will also participate in the project: Progmat, Datachain and TOKI.

The press release notes that the market for cross-border transfers will reach $182 trillion in 2022. However, the G20 has identified four critical areas — cost, speed, access and transparency — that need significant improvement, the statement said. Therefore, they plan to use stablecoins to solve existing problems.

“The cross-border platform Project Pax will use the existing Swift API structure for banks, and the blockchain company Progmat will make settlements on different blockchains. […] This enables financial institutions to avoid difficulties during fiat currency transfers and minimize investment costs,” the press release said.

It is known that the initiative is aimed at expanding cooperation with more countries and financial institutions. The platform is planned to be commercialized by 2025.

The message also states that the new platform not only complies with legal regulations, but also takes into account accounting and tax aspects. In addition, stablecoins can be denominated in major fiat currencies such as the Japanese yen, the US dollar, and the euro.

We will remind you that earlier the Prime Minister of Japan called Web3 and blockchain a solution to social problems.