MUFG invests in blockchain interoperability startup DataChain
Summary
Today blockchain interoperability startup DataChain said it has received funding from Japans biggest bank, MUFG. The two firms have been working together since last year on blockchain interoperability for MUFGs Progmat Coin, a multi bank stablecoin issuance platform. Earlier this month the companies said they were targeting public blockchain stablecoins, with the timeline confirmed today as April 2024.The amount of the investment was not disclosed but the Nikkei reported it was likely less than Yen 100 million ($700,000) representing just 1% of the company.There are several aspects to the joint initiatives. But worldwide theres a trend for there to be multiple security token platforms, even if Progmat is the dominant one in Japan at the moment. The other big one in Japan is Nomuras BOOSTRY.MUFGs Progmat is in the process of incorporating, with outside investment from stock exchange operator JPX, Mizuho, SMBC, SBI, Sumitomo Mitsui Trust and NTT Data.The big bank has previously made blockchain investments including committing $22.5 million to a Japanese joint venture with web3 gaming and metaverse startup Animoca Brands last summer.