Connect with us

Crypto World

Japan’s $6.5B Stablecoin Push: How Cosmos Powers 200 Banks in Tokenized Deposit Revolution

Published

on

21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Progmat Coin consortium unites 200+ Japanese banks for ¥1 trillion three-year stablecoin issuance plan.
  • Project Pax integrates Swift API with IBC protocol to preserve banking workflows while modernizing settlement.
  • Cosmos architecture enables ledger-level compliance controls and permissioned issuance for regulated assets.
  • IBC interoperability protocol maintains zero security exploits since 2021 launch across 200+ blockchains.

 

Tokenized deposits and stablecoins continue to reshape institutional settlement systems as major financial players adopt blockchain infrastructure.

Japan’s banking consortium, backed by over 200 institutions, plans to issue approximately ¥1 trillion in stablecoins over three years using Cosmos technology.

The initiative demonstrates how traditional finance integrates programmable money while maintaining regulatory compliance and operational control.

Banking Consortium Leverages Cosmos for Cross-Border Settlement

Progmat Coin represents a significant development in institutional blockchain adoption. The platform, co-developed by Datachain, brings together Japan’s largest banks and financial institutions. The consortium selected Cosmos infrastructure to address persistent inefficiencies in cross-border payments.

Advertisement

Project Pax, launched by Progmat and Datachain, uses the Inter-Blockchain Communication Protocol as its core interoperability layer.

The architecture preserves existing banking workflows while modernizing settlement infrastructure. Banks initiate payments through Swift’s API, maintaining familiar compliance controls throughout the process.

The settlement layer operates across both public and private blockchains. Progmat issues regulated stablecoins that move via IBC connections. Datachain’s multi-prover security model meets Japanese regulatory requirements while enabling cross-chain transfers.

This design targets the G20’s identified weaknesses in cross-border payments. The system eliminates correspondent banking chains and enables real-time settlement.

Advertisement

It decouples payment reach from correspondent relationships and provides immutable records for regulatory reporting.

Compliance Controls and Network Connectivity Drive Institutional Adoption

Cosmos-based chains allow institutions to embed compliance logic at the ledger level. Issuers configure permissioned issuance, whitelisted participants, and transaction limits directly into chain architecture. This approach shifts enforcement closer to the point of issuance rather than relying on external controls.

The technology stack powers over 200 independent blockchains. The interoperability protocol has remained free of security exploits since launching in 2021.

This track record addresses threshold concerns about whether underlying technology can operate at scale.

Advertisement

Institutions retain control over validator selection and governance processes. Compliance logic, redemption workflows, and access controls embed at the ledger level.

Issuers can restrict IBC connections to approved counterparty chains that implement compatible compliance standards.

Cosmos supports EVM compatibility through its framework, enabling interaction with existing treasury and payment applications.

Institutions can restrict connectivity to approved networks while maintaining access to broader liquidity ecosystems.

Advertisement

This connectivity allows tokenized deposits to operate within purpose-built chains without sacrificing interoperability.

The Progmat initiative illustrates how regulated stablecoin infrastructure can scale while preserving predictability. Financial institutions require control, compliance, and integration with existing banking systems.

Tokenized deposits extend bank money into programmable environments without replacing central bank-issued currencies or disrupting core banking operations.

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Pumpfun Unveils Investment Arm and $3 Million Hackathon

Published

on

Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

Source link

Continue Reading

Crypto World

Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Published

on

Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

Advertisement

Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

Advertisement
Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.