TOKI, a well-known interchain bridge service and respected partner of Progmat, has started a collaboration with Noble, a famous token-issuing system. Together they will change the Cosmos environment by creating Japanese stablecoins that are carefully maintained.
What Is the Progmat Project, and Why Is It Important?
Mitsubishi UFJ Trust and Banking (MUFG), the most important bank in Japan, developed the idea for Progmat. This ambitious project is strongly supported by an influential group of more than 200 well-known Japanese enterprises. This group includes such famous banks as SMBC and Mizuho. The Japan Exchange Group (JPX) has also worked hard to make a difference.
Motoki Yoshida, TOKI’s respected marketing manager, provided information that shows that Progmat is working hard to create an advanced platform. This platform will give banks and other reputable financial companies that operate within regulatory systems more options. Its main goal is to make it so every institution can issue stable coins without problems.
The basic structure involves bringing in financial institutions with a clear interest in issuing stablecoins. These institutions must place an amount of fiat currency equal to the stablecoin’s value in the MUFG trust bank. Because Progmat is an intelligent crypto player, it creates an equal amount of stablecoins in response to the action above. Yoshida says that the funds in the trust bank are unlikely to go bankrupt, which means that this stablecoin can be used on public blockchains in a way that is considered very safe.
Japan Continues to Strengthen Its Position in the Crypto Market
Japan is a significant player in the cryptocurrency world, and it strengthened its position by passing the Payment Services Act, a new law on stablecoins. This critical change officially began on June 1, 2023, a happy day. According to government rules, all stablecoins in circulation must follow a strict pegging system that pegs their value to the respected Japanese yen or any other accepted legal tender.
Given the current state of the law, stablecoins using advanced Progmat technology will likely be released in early 2024. Yoshida said: “TOKI and MUFG have entered a strategic alliance to place Japanese stable coins in public circuits. This will create a strong interchain structure that exploits the potential of these stablecoins.”
Prospects for Toki and Noble Collaboration
The esteemed TOKI and Noble teams are working with Progmat to bring to life the creative idea of a Japanese stablecoin that the company told Blockworks about.
The TOKI team’s primary goal is to make these stablecoins available at the Cosmos IBC. However, their ultimate goal is to make interchain communication possible so that these stablecoins can be easily traded with their Ethereum counterparts. This innovative plan wants to open up the potential for interchain lending, making these stablecoins more valuable and flexible.
Japanese stablecoins are expected to be released for the first time on Noble’s platform during the Spring Equinox in 2024. Mainnet for the well-known blockchain project TOKI is scheduled to be released in the fourth quarter of this year.