Japan’s largest banks team up to bring stablecoins to Cosmos

TOKI and Noble will work with Progmat, a project launched by Mitsubishi UFJ Trust and Banking, to bring Japanese stablecoins to Cosmos

article-image

Hit1912/Shutterstock modified by Blockworks

share

TOKI, a cross-chain bridge provider and partner of Progmat, will be working with Noble, a token issuance protocol, to bring fully collateralized Japanese stablecoins to the Cosmos ecosystem.

Progmat is a project launched by Mitsubishi UFJ Trust and Banking (MUFG) — the largest bank in Japan, and has the support of over 200 Japanese companies including major banks such as SMBC and Mizuho. The Japan Exchange Group (JPX) is also involved in the project. 

Motoki Yoshida, marketing manager of TOKI, told Blockworks that Progmat is currently building a platform that will enable banks and regulated financial institutions to issue their own stablecoins.

“The basic architecture involves financial institutions interested in issuing stablecoins depositing an equivalent amount of fiat currency with MUFG’s trust bank. Progmat then issues an equivalent amount of stablecoins. The funds in the trust bank are bankruptcy-remote, making this potentially the most secure stablecoin for use on public blockchains,” Yoshida said.

Japan has been making moves in the cryptocurrency world, recently enacting a stablecoin law, otherwise known as the Payment Service Act, which came into effect on June 1, 2023. The law requires that all issued stablecoins must be pegged to the yen or another legal tender.

“In light of this legislation, stablecoins utilizing Progmat are expected to be issued in early 2024. TOKI has partnered with MUFG to bring Japanese stablecoins to public chains and provide a cross-chain infrastructure that uses these stablecoins,” Yoshida said.

So what’s happening on Cosmos?

The TOKI and Noble teams are currently working with Progmat to bring the Japanese stablecoin vision to life, the company told Blockworks.

Although its initial plans are to make these stablecoins available on the Cosmos IBC, the TOKI team hopes that eventually, these stablecoins can be swapped cross-chain with stablecoins on Ethereum, and be used for cross-chain lending. 

The issuance of Japanese stablecoins on Noble is expected to launch in spring 2024. TOKI itself will launch its mainnet in Q4 of this year.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (8).png

Research

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

article-image

BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

article-image

DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

article-image

In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

article-image

Some systems improve by failing — and crypto has no choice

article-image

Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

article-image

Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics