Megabanks Approved for Support by the FSA for FinTech PoC Hub
MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking Corporation, and Progmat have announced that their joint stablecoin (SC) issuance and advanced cross-border settlement for a Mitsubishi Corporation proof-of-concept have both been approved to receive support from the Financial Services Agency of Japan’s FinTech PoC Hub. This is the first project supported by the Payment Innovation Project (PIP), and the 11th project overall supported by the FinTech Proof-of-Concept Hub.
Overview of the proof-of-concept
Based on a trust agreement where banks act as joint principal trustees and a trust bank acts as the agent trustee, the SC will be issued as specified trust receivable rights as defined in Article 2, Paragraph 9 of the Payment Services Act. This will verify whether the SC can be used for cross-border payments between Mitsubishi Corporation’s Japanese and overseas locations.
Progmat will provide the necessary infrastructure and technology support for the issue, etc., of the SC via Mitsubishi UFJ Trust and Banking Corporation in this proof-of-concept. The three banks considering joint issuance will define requirements and establish evaluation criteria to build a concrete structure.
Regulatory compliance measures aligned with the service design by the banks acting as SC issuers will also be verified, as well as practical approaches for user protection measures to be implemented by the agent trustee trust bank.
Purpose of the proof-of-concept
The advancement of payments utilizing blockchain technology and the use of tokenized deposits and SCs are being explored both domestically and overseas, with an increase in related measures including proof-of-concepts. Against this backdrop, this proof-of-concept aims to accumulate practical knowledge regarding joint SC issuance to be leveraged as future SC users and use cases emerge.
Norbert Gehrke
