Stablecoin Payment Product Moves into Development Phase for Practical Use Expanding to Support Domestic and Peer-to-Peer Transfers Alongside Cross-Border Transfers
September 18, 2024
Datachain and Progmat are pleased to announce that their stablecoin-based transfer product, which will use Progmat's "Progmat Coin Platform," has entered the development phase geared toward practical deployment.
Datachain and Progmat have been solid partners in advancing the stablecoin business, including the joint development of a stablecoin platform (*1) and the launch of “Project Pax,” a cross-border transfer platform utilizing Swift's existing API framework.
We aim to provide greater value to meet a wider range of needs by combining Datachain's extensive technical expertise in blockchain technology with the SC issued through Progmat's "Progmat Coin Platform."
1．SC Payment Product
As an initial use case, this product focuses on developing the functionalities required for cross-border transfers within "Project Pax." Following successful technical validation and prototype development, we have now entered the development phase geared toward practical implementation, with a target for commercial launch in 2025.
The specific areas of development include the following:
By implementing and verifying these features, we aim to address practical challenges such as AML/CFT compliance and regulatory requirements, enabling secure cross-border transfers using stablecoins. Additionally, we are accelerating development to support domestic transfers and peer-to-peer payments, and will design and implement further features such as user-friendly wallets for individual customers.
2．Target Market Overview
The cross-border payments market is vast, with a transaction volume reaching $182 trillion in 2022. Even when focusing solely on the revenue generated by payment service providers, the market is estimated to be worth $183.6 billion by 2023, underscoring its enormous scale. As international trade continues to grow, this market is expected to expand at a compound annual growth rate (CAGR) of 7.43%.
Stablecoins (SC) currently account for an estimated 0.5% of the total volume of fiat currency transactions, with most SC usage limited to individuals and blockchain projects utilizing blockchain services. However, the potential for stablecoin-based payment solutions to expand into the enterprise sector presents a significant opportunity for further market growth.
The demand for cross-border peer-to-peer payments is also rising in tandem with global integration. For example, according to the annual report from cross-border payment company Wise for the fiscal year ending March 2024, the total volume of cross-border peer-to-peer transfers reached £87.2 billion, representing a 14% year-on-year growth.
At Datachain and Progmat, we are committed to capturing the enormous potential of this fast-growing market. In addition to complying with stablecoin regulations, we are addressing accounting and tax requirements while delivering products that enhance customer experience across operational touchpoints. By doing so, we aim to provide value through faster and more cost-efficient solutions.
*2 : https://www.datachain.jp/news/progmat-and-datachain-launch-project-pax
About Progmat
Progmat is a startup company building digital asset infrastructures that can transform the financial system. With a mission of "Connecting the society with the programmable network and digitizing every value," Progmat delivers the issuance and administration platform for tokenized securities, stablecoins, and utility tokens, whilepursuing partnerships to expand global use of digital assets. Progmat, as an independent firm backed by several key institutions in national financial markets, also leads digital assets ecosystem across multiple industries by running the Digital Asset Co-Creation Consortium, which has over 200 memberfirms. For more information, visit https://progmat.co.jp/en/
About Datachain
Datachain is a blockchain startup founded in 2018 that specializes in blockchain interoperability. Its core products include YUI, a Hyperledger Lab that enables interoperability between multiple heterogeneous blockchains via IBC, and LCP, aproxy for light client verification using TEEs. Datachain is also working on anIBC-enabled cross-chain bridge in partnership with TOKI and are involved in several projects with enterprises, focusing on cross-chain technology. For more information about Datachain, please visit https://www.datachain.jp/