Bank of Mitsubishi UFJ, Sumitomo Mitsui Bank and Mizuho Bank will pilot stablecoin platforms to facilitate cross-border transfers. The pilot test, called "Project Pax", will utilize stablecoins issued by Progmat, a blockchain startup backed by SBI Holdings and Japan Exchange Group. The project will be operated by Progmat, Datachain and TOKI to facilitate testing of cross-chain transactions. The project plans to leverage SWIFT's existing banking API framework to instruct Progmat to settle on the blockchain network. This helps address anti-money laundering and other compliance challenges. "This enables the Financial Institution Group to avoid operational redundancy for fiat currency transfers and minimize investment costs," the project said. "Project Pax" will start with a prototype, with the goal of commercializing the platform by 2025, according to the statement.