Originally published on: September 06, 2024
Datachain, a cutting-edge blockchain startup specializing in interoperability, has unveiled Project Pax, a stablecoin platform designed to streamline international business settlements.
In an official announcement on Sept. 5, it was revealed that Japan’s top three banks – Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank – are endorsing the initiative.
This groundbreaking project is the result of a collaboration between leading blockchain firms Datachain, Progmat, and TOKI, with a vision for worldwide involvement from financial institutions.
Motoki Yoshida, the marketing manager at Datachain, explained to Cointelegraph that the platform will initially focus on B2B cross-border transfer use cases to revolutionize the $182 trillion global cross-border payments market plagued by inefficiencies in speed, accessibility, and cost.
The G20 has identified these shortcomings and emphasized the urgent need for transparency improvements, paving the way for Project Pax to transform institutional financial transactions by integrating stablecoins into the international business settlement process.
By utilizing stablecoins as an enterprise payment tool, this initiative seeks to overcome the limited adoption of fiat-pegged cryptocurrencies for traditional business operations and enhance efficiency.
The stablecoin platform will leverage Swift’s existing API framework to enable banks to instruct Progmat for blockchain settlements.
Recent fluctuations in Bitcoin’s price, which dropped by 6.5% on Sept. 3, have highlighted ongoing concerns about financial stability. BoJ Governor Kazuo Ueda’s statement regarding interest rate hikes has reignited fears of a recession and its impact on risk assets like Bitcoin.
Stay tuned for more updates on Japan’s progressive efforts in the global cryptocurrency space!
