Japan’s Mitsubishi UFJ Financial Group Launches Stable Currency for Digital Securities Settlement

According to reports, Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), has completed a cross industry experiment using stable currency to settle digital securities. The bank has spent several years developing the digital securities infrastructure Progmat, a key requirement being the ability to settle through stable currency. Therefore, MUFG has developed Progmat Coin as an infrastructure to support stable currencies from multiple regulated issuers.

MUFG completes the interoperability settlement test of Progmat Coin stable currency blockchain

Digital securities and blockchain technology have been advancing at breakneck speed in recent years, but the problem of settlement is still a major obstacle. It is difficult to settle digital securities on blockchain because traditional payment systems are not suitable for the decentralization of blockchain, and the volatility of cryptocurrencies poses significant risk. However, the Japanese financial giant Mitsubishi UFJ Financial Group (MUFG) has developed a solution to this problem by launching a stable currency called Progmat Coin.

The Progress of MUFG’s Digital Securities Infrastructure

MUFG has been leading the development of blockchain technology in Japan for several years, and its digital securities infrastructure Progmat is one of the most advanced in the world. The infrastructure includes a system for issuing, trading, and settlement of digital securities. The main challenge of developing this system was to find a way to settle digital securities without using volatile cryptocurrencies.

The Role of Progmat Coin

MUFG has solved the settlement problem through Progmat Coin, which is an infrastructure that supports stable currencies from regulated issuers. The stable currency is a digital asset that is pegged to a more stable asset like the US dollar. Unlike cryptocurrencies, stable currencies do not fluctuate wildly in value and are therefore an ideal solution for cross-industry experiments like digital securities settlement.

Benefits of Progmat Coin

The benefits of Progmat Coin are multi-faceted. Firstly, it provides a stable and secure means of settling digital securities that will reduce risk for all parties involved. Secondly, the use of stable currency makes cross-border transactions easier and faster, as the currency does not need to be converted into a different currency before settlement. Thirdly, stable currencies are much easier for regulators to monitor and regulate, which is important for ensuring the stability of the financial system.

The Future of Digital Securities Settlement

The launch of Progmat Coin is a major milestone for the digital securities industry and is set to revolutionize the way that digital securities are settled. It is expected that other financial institutions will follow in the footsteps of MUFG and develop their own stable currencies for settlement. This will lead to a more robust and secure digital securities market, which will benefit both investors and businesses.
In conclusion, MUFG’s launch of Progmat Coin is a significant development in the digital securities industry, and it solves the long-standing problem of settlement. With the adoption of stable currencies for settling digital securities, we are likely to see a much more efficient and secure digital securities market emerge in the coming years.

FAQs

Q: What is a stable currency?
A: A stable currency is a digital asset that is pegged to a stable asset like the US dollar, and therefore does not fluctuate wildly in value like cryptocurrencies.
Q: Why is settlement a problem for digital securities?
A: Settlement is a problem for digital securities because traditional payment systems are not suitable for the decentralization of blockchain, and the volatility of cryptocurrencies poses significant risk.
Q: What are the benefits of Progmat Coin for digital securities settlement?
A: Progmat Coin provides a stable and secure means of settling digital securities, makes cross-border transactions easier and faster, and is easier for regulators to monitor and regulate.