Japanese Banks Join Stablecoin Trade-Settlement Pilot in Japan
The six-institution experiment will link TradeWaltz with a stablecoin platform and use bank approval of export-receivables purchases to trigger settlement.
Japan’s Financial Services Agency is supporting a six-institution pilot testing stablecoin settlement triggered by a bank’s approval of an export-receivables purchase.
The experiment began in September and involves TradeWaltz, NTT Data, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation and Mitsubishi UFJ Trust and Banking Corporation.
The trial will connect TradeWaltz with a stablecoin platform. Settlement will be triggered when a bank approves the purchase of export receivables.
The experiment plans to use a stablecoin developed through the institutions’ joint research. It will test the technical and legal issues involved in using stablecoins for trade payments.
The project also plans to examine electronic bills of lading, known as eB/Ls, along with custody services based on smart contracts.
