MUFG, Japan’s biggest bank, is diving deep into blockchain, eyeing those permissionless stablecoins to smooth out trade deals with the up-and-coming markets, aiming to make exporting from Japan a breeze. They wanna give the same sureness that payment’s gonna happen just like a letter of credit does but without needing a bank to back it up. Along for the ride in this exploratory mission are Progmat, a blockchain platform MUFG helped to start, that’s all about tokenizing stuff and handling stablecoins, Standage, which knows the ins and outs of export settlements, and Ginco, a web3 wallet outfit that’s already tight with Progmat and MUFG.
This whole shindig points out the tough spot importers in emerging markets find themselves in, especially when trying to use the U.S. dollar for across-the-border payments, they’re hitting walls with currency restrictions, sanctions, and the hassle of using letters of credit. The stablecoin scheme they’re cooking up aims to make these transactions smoother by cutting down the number of go-betweens and setting up something like an escrow, so the exporter knows for sure the importer’s got the dough ready for payment. From the importer’s side, they’re only letting go of those stablecoins when they get the bill of lading, showing the goods have landed, which kinda gives them the same comfort letters of credit do, minus the trade finance bit.
They’re toying with the idea of popping out one or more homegrown stablecoins, given the legal jargon around big names like USDC and Tether in Japan is kinda fuzzy. So, they might whip up a dollar stablecoin right in Japan, though they haven’t pinned down which currency they’ll use, and it might end up being a mix.
When it comes to who’s doing what, MUFG’s the big dog holding onto the stablecoin reserve assets, Progmat Coin’s the one issuing the stablecoins, Standage brings the export trading mojo, and Ginco’s handling the wallet. Ginco and Standage are buddy-buddy on making a specialized wallet, cause they need a system that lets funds get released only when everyone says it’s okay. Standage is also using some slick blockchain tech to make sure they can track when the cargo hits the dock.
In the meantime, Ginco, Progmat, and MUFG are also poking around with another study, looking at popping Japanese yen and dollar stablecoins for settling scores between cryptocurrency exchanges. MUFG and Progmat are even joining forces with Binance and the folks behind JPYC for more stablecoin adventures.
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