Japan’s top banks back Project Pax, a new stablecoin initiative designed to improve cross-border business transactions by addressing inefficiencies in global trade. Launched by blockchain startup Datachain, the platform aims to streamline international payments using stablecoins.
Announced on September 5, Project Pax is supported by Japan’s three largest banks—Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank. The project is a collaboration between blockchain firms including Datachain, Progmat, and TOKI, with expectations of broad international involvement from financial institutions.
The $182 trillion global cross-border payments market has long been plagued by issues of speed, accessibility, and cost, areas the G20 has flagged for ”significant improvements.” Project Pax seeks to solve these inefficiencies by integrating stablecoins into international settlements, enabling faster, cost-effective, and round-the-clock cross-border transfers.
The initiative will use Swift’s existing API framework to allow banks to settle payments via blockchain while addressing regulatory and compliance challenges. It also aims to reduce the operational redundancies associated with traditional fiat currency transfers, making stablecoins a practical tool for enterprise payments.
With Japan’s largest banks backing the project, Project Pax is poised to advance the use of stablecoins in global trade, potentially revolutionizing cross-border financial transactions.
Featured image from: cointelegraph.com