Progmat is an innovative project focused on transforming various forms of value into digital assets and seamlessly connecting society through their programmable networks.
Conceived and launched by Mitsubishi UFJ Trust and Banking, the project has become a significant influence in the Japanese financial landscape. Over 200 companies are involved, including Japan Exchange Group (JPX) and major Japanese banks like SMBC and Mizuho, all working together to enhance the initiative’s impact and reach even more.
By issuing stablecoins and rolling out multi-chain deployments, including public blockchains, Progmat can create innovative financial use cases that digital finance companies have been wary of diving into.
We believe Progmat is something worth knowing about for not only people in Japan, but also those interested in the public blockchains’ ecosystem and Real World Asset (RWA) including stablecoins and security tokens, as well as anyone curious about the blend of traditional finance and DeFi.
It’s unfortunate that the full appeal of the Progmat project isn’t being conveyed since its information is mostly in Japanese. So, in this article, we’re going to give you a quick and easy rundown of Progmat.
You can find official information about Progmat in Japanese from the link below.
Digitizing All Assets
As mentioned earlier, Progmat is all about turning every kind of value digital and connecting society with programmable networks.
Progmat offers three kinds of token issuance infrastructures:
- Stablecoins
- Security tokens
- Utility tokens
With Progmat’s platform, all sorts of stakeholders can set up systems to issue these three types of tokens.
Especially when it comes to security tokens, the total amount of digital securities issued using Progmat has already gone beyond 61 billion yen.
Stablecoins are another interesting point. In Japan, with the revised Payment Services Act set to take effect in June 2023, the issuance and circulation of stablecoins will be possible as soon as the intermediaries handling them sort out their licenses. Progmat Coin-based stablecoins are also expected to hit the market around that time.
Envisioning Multi-chain Deployment
What’s super cool about Progmat is that they’re all about rolling out multi-chain deployments, even on public blockchains like Ethereum and Cosmos.
This means they’re making it possible to work with stablecoins that follow Japanese laws on these chains. It’s a game changer, as it could mark a major step in bringing Japan’s real-world assets (RWA) into the public blockchains’ ecosystem or blending traditional finance with web3.
JPX and Major Japanese Megabanks Collaborate to Establish a Joint Company “Progmat”
What’s even more exciting about Progmat is the potential it has, especially when you look at its organizational structure. As I mentioned earlier, Progmat kicked off with Mitsubishi UFJ Trust and Banking, but now JPX and major Japanese megabanks are teaming up to consider setting up a joint venture.
Plus, the Digital Currency Consortium (DCC), which is pushing the Progmat project forward, has become a huge group with more than 200 companies on board as of May 2023.
We think the fact that so many companies are showing interest in such an advanced area is something that should get more attention worldwide.
Partnership with TOKI
Right from the start, Progmat has been all about cross-chain tech, specifically seeking a trust-minimized interoperability system that can link up with public blockchains.
That’s why Progmat and TOKI announced a partnership to build a cross-chain infrastructure!
This joint effort is all about building a cross-chain infrastructure using Progmat Coin-issued stablecoins, messaging protocols using IBC and LCP, and TOKI’s unified liquidity.
If this comes to fruition, it’ll enable cross-chain transactions between various blockchains like Ethereum, Cosmos, Avalanche, and Polygon using Japanese bank-backed stablecoins.
That means we could see not just cross-chain swaps, but also cross-chain purchases and cross-chain lending, among other cool possibilities.
Final Thoughts
We think Progmat is a groundbreaking project that really should be getting more attention worldwide, and we’re super excited to collaborate on building a cross-chain infrastructure.
If you’re interested, we’d be more than happy to keep sharing info about Progmat with the global community. So, don’t hesitate to tweet your thoughts our way — we’d love to hear from you!
