Strengthening cooperation in issuing and distributing stablecoins on Ethereum, etc. Datachain raises funds from Mitsubishi UFJ Trust and Banking

Stablecoin deal with Mitsubishi UFJ Trust and Banking

Datachain Co., Ltd., a cross-chain technology provider, announced on the 27th that it had raised funds from Mitsubishi UFJ Trust and Banking. This step is part of our goal to strengthen cooperation in the stablecoin business with Mitsubishi UFJ Trust and Banking.

The two companies have been driving business development and technology verification using the stablecoin issuance management platform “Progmat Coin” developed by Mitsubishi UFJ Trust and Banking. Progmacoin plans to issue and circulate stablecoins.

Going forward, Datachain will actively promote the issuance and distribution of stablecoins on public blockchains such as Ethereum, aiming for commercialization from April to June 2024. This initiative is a collaboration between Mitsubishi UFJ Trust and Banking and TOKI, providing a cross-chain bridge for the global market.

Mr. Tomohiro Kimura, Director and Managing Executive Officer of Mitsubishi UFJ Trust and Banking Corporation, said the following.

The digital asset market is expected to grow in the future, and Mitsubishi UFJ Trust and Banking has launched and promoted “Progmat” for such a future. When thinking about the future of digital assets, multi-chain deployment and cross-chain transactions are key. We are pleased to have invested in Datachain, which has unique expertise in such an important area of ​​technology, and to have a deeper relationship as a shareholder going forward. We will do our best to bring about big changes in the digital asset market.

Connection:Three companies, including Mitsubishi UFJ Trust and Banking, are looking to build a stablecoin cross-chain platform

Efforts to use cross-chain technology

According to a joint report by BCG and ADDX, the market for digital assets alone is expected to grow to a minimum of $16.1 trillion and a maximum of $68 trillion by 2030. The stablecoin and crypto asset (virtual currency) markets are also expected to grow in the same way, and the overall digital asset market is expected to continue growing in the future.

Datachain and Mitsubishi UFJ Trust and Banking have also collaborated to commercialize various initiatives leveraging security tokens (digital securities) and cross-chain technology.

In particular, the aim is to implement cross-chain processing of digital securities using stablecoins by 2024. To achieve this goal, we plan to further deepen cooperation with related securities companies.

Stablecoins are created using blockchain technology and are designed to ensure price stability based on the underlying assets. In the global market, USDCoin (USDC) and Tether (USDT), pegged to the US Dollar, have become mainstream and are used as payment methods for virtual currency transactions and NFT (non-fungible token) transactions. Usage is expected to expand in the future for international money transfers and online purchases.

In Japan, due to the enactment of the revised Payment Services Act on June 1, 2023, it became possible to issue stablecoins backed by legal tender. Last week, Tatsuya Saito, product manager of Mitsubishi UFJ Trust and Banking’s digital asset business office, announced that they are in the process of coordinating with external partners to issue stablecoins for the global market.

What is Web3?

The current centralized web is defined as Web 2.0 and refers to an attempt to implement a decentralized network using blockchain. A typical feature is the use case of decentralized networks such as blockchain, such as accessing dApps via virtual currency wallets.

▶️Cryptocurrency Glossary

Connection:MUFG is working on a new overseas project to become a “global hub for stablecoin issuance.”

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