{"id":5192,"date":"2024-01-31T10:00:24","date_gmt":"2024-01-31T01:00:24","guid":{"rendered":"https:\/\/wp.standage.co.jp\/?p=5192"},"modified":"2026-02-06T13:01:47","modified_gmt":"2026-02-06T04:01:47","slug":"collaborative-exploration-of-japanese-stablecoin-utilization-for-trade-settlements","status":"publish","type":"post","link":"https:\/\/wp.standage.co.jp\/us\/2024\/01\/31\/collaborative-exploration-of-japanese-stablecoin-utilization-for-trade-settlements\/","title":{"rendered":"Mitsubishi UFJ Trust and Banking Corporation, Progmat, STANDAGE, and Ginco to Collaborate on Using "Domestic Stablecoins" for Trade Settlements"},"content":{"rendered":"

Mitsubishi UFJ Trust and Banking Corporation
\nProgmat, Inc.
\nSTANDAGE Co., Ltd.
\nGinco Co., Ltd.<\/p>\n

 <\/p>\n

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.
\nBy 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.<\/p>\n

 <\/p>\n

1. Background and objectives<\/strong><\/p>\n

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.<\/p>\n

 <\/p>\n

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.<\/p>\n

\"\"<\/p>\n

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.<\/p>\n

 <\/p>\n

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.<\/p>\n

 <\/p>\n

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.<\/p>\n

 <\/p>\n

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.<\/p>\n

 <\/p>\n

[Roles of each company in this joint study]<\/strong><\/p>\n

Progmat, Inc.<\/strong>Development of the "Progmat Coin" platform<\/p>\n

Mitsubishi UFJ Trust and Banking Corporation:<\/strong>Execution of trust operations in trust-type SC schemes<\/p>\n

STANDAGE Co., Ltd.:<\/strong>Development of trade settlement system using SC<\/p>\n

Ginco Corporation:<\/strong>Provision of Ginco Enterprise Wallet and joint development of a wallet optimized for this use case<\/p>\n

 <\/p>\n

2. Specific details of the collaboration<\/strong><\/p>\n

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:<\/p>\n

\"\"<\/p>\n

 <\/p>\n

(1) Demonstration of use of the "Progmat Coin" platform for trade settlement at domestic SCs<\/p>\n

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.<\/p>\n

 <\/p>\n

(2) Development of a new wallet specialized for trade payments (between businesses)<\/p>\n

As a premise, various domestic SCs issued through the \u201cProgmat Coin\u201d 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.<\/p>\n

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.<\/p>\n

 <\/p>\n

3. Future plans<\/strong><\/p>\n

The goal of 2 (1) above is to generate the first PoC by around spring 2024.<\/p>\n

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.<\/p>\n

 <\/p>\n

 <\/p>\n

The End<\/p>\n

 <\/p>\n

 <\/p>\n

*1) For an overview of various stable coin issuance projects, please see below.<\/p>\n

Commentary:https:\/\/note.com\/tatsu_s123\/n\/nf6d1da39abb8<\/a>><\/p>\n

 <\/p>\n

<Attachment><\/strong><\/p>\n

 <\/p>\n

1. Roles and overview of each company<\/strong><\/p>\n

(1) Developer of the platform \u201cProgmat Coin\u201d<\/p>\n

Company name: Progmat, Inc.<\/p>\n

Representative: Tatsuya Saito, Founder and CEO<\/p>\n

URL:https:\/\/progmat.co.jp\/<\/a><\/p>\n

 <\/p>\n

(2) Trustee in a trust-type SC scheme (trust practice execution)<\/p>\n

Company name: Mitsubishi UFJ Trust and Banking Corporation<\/p>\n

Representative: President and CEO, Iwao Nagashima<\/p>\n

URL:https:\/\/www.tr.mufg.jp\/<\/a><\/p>\n

 <\/p>\n

(3) Development of a trade settlement system using SC<\/p>\n

Company name: STANDAGE Co., Ltd.<\/p>\n

Representative: President and CEO Akinori Adachi<\/p>\n

URL:https:\/\/standage.co.jp\/<\/a><\/p>\n

 <\/p>\n

(4) Joint development of a wallet optimized for this use case<\/p>\n

Company name: Ginco Co., Ltd.<\/p>\n

Representative: Representative Director Morikawa Muto<\/p>\n

URL:https:\/\/ginco.co.jp\/<\/a><\/p>\n

 <\/p>\n

About "Progmat"<\/strong><\/p>\n

We have published a website and explanatory articles, so please see them at the following URL.<\/p>\n

Website:https:\/\/progmat.co.jp\/<\/a>><\/p>\n

Commentary:https:\/\/note.com\/tatsu_s123\/n\/n03a291fa52ab<\/a>><\/p>\n

\"\"<\/p>\n

 <\/p>\n

 <\/p>\n

\u25c6About the "Progmat Coin" Platform<\/strong><\/p>\n

The "Progmat Coin" platform is an infrastructure for issuing and managing various SCs.<\/p>\n

The materials have been made public, so please see them at the following URL.<\/p>\n

Source:https:\/\/speakerdeck.com\/progmat\/sc<\/a>><\/p>\n

Commentary:https:\/\/note.com\/tatsu_s123\/n\/n406e5cfa9f1c<\/a>><\/p>\n

\"\"<\/p>\n

 <\/p>\n

 <\/p>\n

About STANDAGE<\/strong><\/p>\n

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.<\/p>\n

 <\/p>\n

About Ginco<\/strong><\/p>\n

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.<\/p>","protected":false},"excerpt":{"rendered":"

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 referred to as Mitsubishi UFJ Trust and Banking), Progmat, Inc.\u2026 Continue reading Mitsubishi UFJ Trust and Banking Corporation, Progmat, STANDAGE, and Ginco to Collaborate on Using "Domestic Stablecoins" for Trade Settlements<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":5194,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[46],"tags":[],"acf":{"en_news":{"custom_css":"","en_title":"Collaborative Exploration of Japanese Stablecoin Utilization for Trade Settlements","content":"Mitsubishi UFJ Trust and Banking Corporation
\r\nProgmat, Inc.
\r\nSTANDAGE Inc.
\r\nGinco Inc.

\r\n\r\n \r\n\r\nTokyo, January 31, 2024 -<\/strong> Mitsubishi UFJ Trust and Banking Corporation, Progmat, Inc., STANDAGE Inc. and Ginco Inc. have entered into a joint collaborative exploration (hereinafter, \u201cJoint Exploration\u201d) focused on the viability of Japanese Stablecoin (hereinafter, \u201cJapanese SC\u201d) for use in international trade settlements.

\r\n\r\nThrough integration between STANDAGE Inc.'s blockchain-powered trade settlement system (in development since 2017) with Progmat, Inc.\u2019s \u201cProgmat Coin\u201d platform, it is now possible to deliver quick, reliable and secure international \/ inter-corporate settlements. This Joint Exploration aims to, within 2024, create the first use case in Japan to address current challenges facing emerging trade markets \u2013 with a total market size exceeding 10 trillion USD and where fair transactions in U.S. dollars are hindered by foreign exchange regulations and restrictions on the use of letters of credit.


\r\n\r\n \r\n\r\n1. Background and Objectives<\/strong>

\r\n\r\nThe current total global trade volume amounts to approximately 25.4 trillion USD, with emerging market trade constituting about 40%, totaling around 10 trillion USD. In contemporary trade settlements, transactions between advanced countries are relatively smooth, mainly conducted through bank-mediated U.S. dollar settlements utilizing the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system. While there is room for improvement in terms of speed and cost efficiency in settlement transactions, especially for advanced country-to-country dealings, the process is generally manageable.

\r\n\r\nIn the case of trade in emerging markets, despite transaction volumes exceeding 10 trillion USD, challenges such as foreign exchange restrictions due to geopolitical situations, economic sanctions, as well as limitations related to the use of letters of credit, impede the seamless execution of U.S. dollar settlements. This often results in extended transfer times, (spanning up to several months) and high fees due to the involvement of numerous banks. Consequently, inequities and disadvantages persist, illustrating the reality that trade transactions worldwide continue to be conducted with such challenges in place.

\r\n\r\n\"\"

\r\n\r\n \r\n\r\nWith the goal of realizing a world where trade settlements are certain and equitable across all countries, independent of opaque national regulations and unstable currency situations, STANDAGE Inc. has been actively advancing the development of a new trade settlement system utilizing blockchain and Stablecoins (SC) since its inception in 2017.

\r\n\r\nWhile USD-denominated SCs such as USDC issued by Circle in the United States and USDT issued by Tether in Hong Kong exist, their lack of clear legal standing in Japan hinders conversion into Japanese yen. Consequently, practical implementation within Japan is expected to require some time yet.

\r\n\r\nTo address this situation, Mitsubishi UFJ Trust Bank and Progmat, Inc. are taking the lead in development of the \u201cProgmat Coin\u201d platform \u2013 a permission-less public blockchain based infrastructure for SC issuance in accordance with the recently amended Payment Services Act (put into effect in June 2023). The platform is expected to be eligible for issuance and circulation of various SCs in Japan as soon as necessary licensing has been completed.

\r\n\r\nWith Progmat, Inc. heading development of the \u201cProgmat Coin\u201d platform, Mitsubishi UFJ Trust Bank handling practical aspects of the trust-type SC scheme, STANDAGE Inc. leading development of the SC based trade settlement system, and Ginco Inc. supporting trade wallet development, this Joint Exploration expects to deliver real-world use cases for Japanese trade-related companies, taking the first step towards a practical implementation of a fully compliant Japanese SC based trade settlement system.


\r\n\r\n \r\n\r\nJoint Exploration Partners and Roles<\/strong>

\r\n\r\nProgmat, Inc.:<\/strong> Development of the \u201cProgmat Coin\u201d platform
\r\n\r\nMitsubishi UFJ Trust Bank:<\/strong> Execution of trust operations for the trust-type SC scheme
\r\n\r\nSTANDAGE Inc.:<\/strong> Development of an SC based trade settlement system
\r\n\r\nGinco Inc.:<\/strong> Provision and development of the Ginco Enterprise Wallet, optimized for trade settlement operations


\r\n\r\n \r\n\r\n2. Specific Collaboration Details<\/strong>

\r\n\r\nOverall trade settlement flow and main activities currently undertaken by this Joint Exploration are as follows:

\r\n\r\n\"\"

\r\n\r\ni. Validation of Japanese SC Based Trade Settlements Utilizing the \u201cProgmat Coin\u201d Platform\r\nIn collaboration with Japanese companies currently engaged in trade with emerging markets, will conduct testing and demonstrations of Japanese SC fund transfers using STANDAGE Inc.'s trade settlement system over permissionless public blockchain.

\r\n\r\n \r\n\r\nii. Development of a New Specialized Trade Settlements Wallet (Inter-Corporate Use)\r\nJapanese SCs issued through the \u201cProgmat Coin\u201d platform adhere to global standards and impose no constraints on wallet accessibility. However, for cross-border trade related fund transfers, support for various business workflow processes, including approval flows, regulatory compliance and Japanese localization are indispensable. STANDAGE Inc. and Ginco Inc. will collaboratively develop a new wallet fully supporting trade required business workflow processes and acceptable to trade-related companies using Japanese SCs for trade settlements.


\r\n\r\n \r\n\r\n3. Future Plans<\/strong>

\r\n\r\nThe goal for the aforementioned 2-i is to create the first PoC (Proof of Concept) by around spring 2024.
\r\nIn alignment with the above PoC, 2-ii anticipates completion of a beta version by around spring 2024, with the objective of providing official release within the year 2024.


\r\n\r\n \r\n\r\nAppendix<\/strong>

\r\n\r\nJoint Exploration Partners Info<\/strong>

\r\n