2024.1.31
Mitsubishi UFJ Trust and Banking Corporation
Progmat, Inc.
STANDAGE Co., Ltd.
Ginco Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation (President and CEO: Iwao Nagashima, hereinafter "Mitsubishi UFJ Trust and Banking Corporation"), Progmat, Inc. (Representative Director: Tatsuya Saito, hereinafter "Progmat"), STANDAGE Inc. (Representative Director: Akinori Adachi, hereinafter "STANDAGE"), and Ginco Inc. (Representative Director: Yumeto Morikawa, hereinafter "Ginco") have begun a joint study (hereinafter "this Joint Study") on the use of a "domestic stable coin (abbreviated as "domestic SC")" issued using the "Progmat Coin" platform for trade settlements.
By linking the blockchain trade settlement system that STANDAGE has been developing since 2017 with the "Progmat Coin" platform, safe, fast and reliable international inter-company settlements will be possible. Through this joint study, we aim to create the first use case in Japan by 2024 in trade with emerging countries, where the market size exceeds 1,000 trillion yen, but where fair US dollar-based transactions are extremely difficult due to foreign exchange regulations and restrictions on the use of letter of credit transactions.
1. Background and objectives
The total value of global trade transactions is approximately 2,800 trillion yen, of which approximately 40%, or 1,100 trillion yen, is trade with emerging countries. Modern trade settlements are mainly made in US dollars via banks based on SWIFT (Society for Worldwide Interbank Financial Telecommunication), and although there is room for improvement in terms of the speed and cost required to complete settlements, transactions between developed countries can be carried out relatively without any problems.
On the other hand, in the case of trade with emerging countries, although the transaction volume exceeds 1000 trillion yen, smooth settlement in US dollars is not possible due to issues such as foreign exchange restrictions due to the current situation and economic sanctions, and restrictions on the use of letter of credit transactions. Remittances take several months, and fees increase as the money passes through many countries and many banks. This is the reality that trade is still being conducted around the world, with inequalities and disadvantages.
Since its founding in 2017, STANDAGE has been developing a new trade settlement system that utilizes blockchain and stable coins (SC), with the aim of creating a world where trade settlements can be made reliably and equally in any country, without relying on opaque national regulations or unstable currency situations.
US dollar-denominated "SCs" have existed in the past, such as USDC issued by Circle in the US and USDT issued by Tether in Hong Kong. However, their legal status in Japan was unclear, so there was no way to convert them into Japanese yen, and it was thought that it would take some time before they were put into practical use in Japan.
In this context, Mitsubishi UFJ Trust and Banking Corporation and Progmat are leading the development and construction of the "Progmat Coin" platform, which is based on the use of a permissionless (public) blockchain, as infrastructure for issuing SC in accordance with the revised Payment Services Act, which will come into effect in June 2023. Domestic SCs of various brands using the "Progmat Coin" platform are expected to be able to be issued and distributed as soon as the intermediaries handling them complete the necessary license registration.
In this joint study, the four companies - Progmat, which is leading the development of the "Progmat Coin" platform, Mitsubishi UFJ Trust and Banking Corporation, which is responsible for the practical aspects of the trust-type SC scheme, STANDAGE, which is developing a trade settlement system using SC, and Ginco, which is supporting the development of wallet functions - will work together to first create use cases among domestic trade-related companies in order to commercialize a trade settlement system using a domestic SC.
[Roles of each company in this joint study]
Progmat, Inc.Development of the "Progmat Coin" platform
Mitsubishi UFJ Trust and Banking Corporation:Execution of trust operations in trust-type SC schemes
STANDAGE Co., Ltd.:Development of trade settlement system using SC
Ginco Corporation:Provision of Ginco Enterprise Wallet and joint development of a wallet optimized for this use case
2. Specific details of the collaboration
The overall picture of trade settlement that this joint study aims to achieve and the main areas of focus currently being addressed are as follows:
(1) Demonstration of use of the "Progmat Coin" platform for trade settlement at domestic SCs
With the cooperation of Japanese companies that are engaged in actual trade with emerging countries, we will demonstrate the sending and receiving of payments using STANDAGE's trade settlement system and a "virtual domestic SC" on a permissionless blockchain.
(2) Development of a new wallet specialized for trade payments (between businesses)
As a premise, various domestic SCs issued through the “Progmat Coin” platform will be issued in accordance with global standard specifications on a permissionless (public) blockchain, so Progmat will not place any particular restrictions on the wallets that can be accessed.
However, when used for international remittance and receipt transactions between businesses, it is essential to have a new wallet that can handle approval procedures within the business and support in Japanese. STANDAGE and Ginco will jointly develop a new wallet that can be used for trade settlement and is acceptable to domestic businesses as one of the wallets for handling domestic SC.
3. Future plans
The goal of 2 (1) above is to generate the first PoC by around spring 2024.
Regarding 2 (2), in line with the above demonstration, the beta version is expected to be completed around spring 2024, and the official version is expected to be provided within 2024.
The End
*1) For an overview of various stable coin issuance projects, please see below.
Commentary:https://note.com/tatsu_s123/n/nf6d1da39abb8>
<Attachment>
1. Roles and overview of each company
(1) Developer of the platform “Progmat Coin”
Company name: Progmat, Inc.
Representative: Tatsuya Saito, Founder and CEO
(2) Trustee in a trust-type SC scheme (trust practice execution)
Company name: Mitsubishi UFJ Trust and Banking Corporation
Representative: President and CEO, Iwao Nagashima
(3) Development of a trade settlement system using SC
Company name: STANDAGE Co., Ltd.
Representative: President and CEO Akinori Adachi
(4) Joint development of a wallet optimized for this use case
Company name: Ginco Co., Ltd.
Representative: Representative Director Morikawa Muto
About "Progmat"
We have published a website and explanatory articles, so please see them at the following URL.
Website:https://progmat.co.jp/>
Commentary:https://note.com/tatsu_s123/n/n03a291fa52ab>
◆About the "Progmat Coin" Platform
The "Progmat Coin" platform is an infrastructure for issuing and managing various SCs.
The materials have been made public, so please see them at the following URL.
Source:https://speakerdeck.com/progmat/sc>
Commentary:https://note.com/tatsu_s123/n/n406e5cfa9f1c>
About STANDAGE
Founded in March 2017. With a vision of "creating a world where all countries have equal access to all goods," the company is developing a new trade settlement system that utilizes blockchain and stable coins to enable the safe, secure, and inexpensive simultaneous exchange of "goods" and "money" regardless of region or country. The company sees its main market as emerging countries, especially in Africa, and has established bases in four African countries, including Nigeria, to carry out trade business with Africa. It is not limited to the trade settlement field, but develops and provides systems that realize digital transformation for the entire trade, including market development, ordering, and international logistics, while also working to support the exports of small and medium-sized enterprises in order to increase the number of new trade players in Japan.
About Ginco
Founded in December 2017. With a vision of "changing the course of the economy," we are a Web3 Development Company that utilizes blockchain technology to support companies' Web3 businesses. We provide infrastructure for faster, safer, and more cost-effective blockchain utilization for enterprises. We are particularly proud of our top track record in Japan in the areas of wallets and nodes.
For trade-related inquiries, please contact us here.