MUFG, Progmat To Settle Trade With Emerging Markets
Japan’s largest bank, MUFG, is collaborating with Progmat, Japan’s stand-alone tokenization platform, Standage, and web3 wallet firm Ginco to explore permissionless blockchain stablecoins for trade settlement with emerging markets, particularly for Japanese exports.
The aim is to provide a similar level of payment certainty as a letter of credit without the need for a bank guarantee or credit.
The study also involves three other firms: Progmat, Japan’s Standage, and Ginco. Importers from emerging markets face challenges with U.S. dollar usage for cross-border payments, including foreign currency restrictions, sanctions, and letters of credit.
(With inputs from Shikha Singh)
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