Considering the use of domestically produced stable coins for trade settlement

Mitsubishi UFJ Trust and Banking Corporation, Progmat, Inc., STANDAGE Co., Ltd., and Ginco Co., Ltd. have begun a joint study toward the practical implementation of a trade settlement system that utilizes domestically issued “domestic stable coins.”

The total amount of global trade transactions is approximately 2,800 trillion yen, and approximately 40% is trade with emerging countries. However, due to foreign exchange regulations and restrictions on letters of credit transactions, smooth US dollar-based transactions are difficult. The four companies aim to create Japan’s first use case in this field within 2024.

In the joint utilization experiment, with the cooperation of Japanese companies engaged in actual trade with emerging countries, we will demonstrate the use of STANDAGE’s trade settlement system and domestic stable coins on a permissionless blockchain to send and receive money. The development of the wallet will include an approval flow within the operator and Japanese language support.

Using the “Progmat Coin” platform developed by Progmat, we have begun developing use cases for domestic trade-related companies. It will be linked with a trade settlement system developed by STANDAGE that utilizes blockchain and stable coins.

Mitsubishi UFJ Trust and Banking will be responsible for stablecoin trust operations, and Ginco will be responsible for providing the Ginco Enterprise Wallet and jointly developing business wallets.

connection:JPYC plans to partner with Mitsubishi UFJ Trust and Progmat to expand stable coins and enter the domestic and international SC exchange industry

Settle bill of lading NFT with stablecoin

In the utilization experiment, electronic bills of lading (eB/L) will be turned into NFTs to uniquely and flexibly transfer rights across borders, and reliability will be increased by recording on blockchain. In addition, an instant and simultaneous payment system that does not rely on letters of credit (L/C) shortens the payment period and reduces remittance costs. This has the potential to eliminate inequalities and disadvantages in trade with emerging countries.

Furthermore, STANDAGE’s escrow function (digital safe service) avoids the risk of deferred payment or prepayment, and provides methods other than letter of credit transactions. Tokenization of bills of lading will facilitate the transition from off-chain transactions to on-chain transactions, expanding the scope of stablecoin usage.

According to Tatsuya Saito, CEO of Progmat, by tokenizing the bill of lading, the payment object will be processed on the blockchain, making the use of stablecoins even more essential. This move is expected to open new possibilities for RWA (real value assets) tokenization and stablecoin payments.

connection:Japanese government also participates Approximately 30 private companies including Progmat and SBI Securities are converting VC funds into digital securitization

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