Japan's Banks Join Stablecoin Trade Settlement Pilot
Japan's Financial Services Agency is supporting a six-institution pilot project to test stablecoin settlement for trade payments. The trial began in September and involves several major Japanese banks, including TradeWaltz, NTT Data, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mitsubishi UFJ Trust and Banking Corporation.
The experiment will connect TradeWaltz with a stablecoin platform, where settlement is triggered by a bank's approval of an export-receivables purchase. This means that when a bank confirms the sale of export receivables, the corresponding amount in a stablecoin will be transferred.
The trial aims to use a stablecoin developed through joint research among the participating institutions. It will test technical and legal issues involved in using stablecoins for trade payments, as well as electronic bills of lading (eB/Ls) and custody services based on smart contracts.