Project Pax Aims to Improve Cross-Border Business Payments Through Fiat-Pegged Stablecoins
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- 2024-09-08 21:22:14880browse
Blockchain companies Datachain and Progmat announced Project Pax, a stablecoin project that will bring efficient cross-border payments for business use cases.
Blockchain companies Datachain and Progmat have announced a new stablecoin project called Project Pax, which aims to enable efficient cross-border payments for business use cases. The project is notably backed by Japan's three largest banking groups: Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank.
The project is being undertaken in response to the G20's recognition of the need to enhance the current cross-border payments infrastructure to address issues related to cost, speed, transparency, and accessibility. Despite the cross-border payments market reaching $182 trillion in 2022, such challenges persist.
As part of the initiative, Datachain will utilize Swift's existing API framework to enable banks to instruct Progmat to settle on blockchain networks, ensuring compliance with AML/CFT regulations and addressing the challenges associated with operational setup and business wallet usage.
The announcement from Datachain further states that Project Pax will "aim to leverage stablecoins to enable fast, cost-effective, and 24/7 operational cross-border transfers."
This massive undertaking by Japan's leading banking institutions is poised to propel the utilization of stablecoins for business applications to new heights. Traditional businesses have yet to adopt stablecoins on a large scale, a scenario that Project Pax endeavors to change.
A pilot program for Project Pax is expected to launch shortly, with the goal of expanding stablecoin adoption. The project aims to commercialize the infrastructure by 2025, inviting participation from additional nations and institutions to unlock unprecedented benefits for cross-border payments.
As a cross-chain layer that connects multiple blockchains, Project Pax will facilitate interoperability for stablecoin transfers. To achieve this, the project will integrate the Inter Blockchain Communication (IBC) protocol and the Light Client Proxy (LCP) developed by Datachain.
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