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Japan’s major banks back new stablecoin project for global trade
Project Pax, backed by Japan’s top banks, seeks to streamline cross-border transactions using stablecoins, addressing inefficiencies identified by the G20.
Datachain, a blockchain startup focused on interoperability, announced the launch of Project Pax, a stablecoin platform to facilitate cross-border business settlements.
According to the Sept. 5 official post , Japan’s three largest banks, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, are backing the initiative.
The project is a collaboration between blockchain companies like Datachain, Progmat, and TOKI, with expectations of global participation from financial institutions.
Related: Japan’s Sakana AI partners Nvidia for research, raises $100M
Cross-border inefficiency
The $182 trillion global cross-border payments market faces substantial inefficiencies in speed, accessibility, and cost despite remaining a primary focus for financial institutions.
According to the post, the G20 identified these inefficiencies alongside the need for “significant improvements” to transparency.
“In this market, Progmat and Datachain aim to leverage stablecoins to enable fast, cost-effective, and 24/7 operational cross-border transfers.”
Related: Japan’s finance regulator calls for lower crypto taxes in 2025
Stablecoins as a tool for enterprise
Project Pax aims to address the inefficiencies highlighted by the G20 by integrating stablecoins into the international business settlement process
The initiative seeks to change the limited adoption of fiat-pegged cryptocurrencies for traditional business operations by using stablecoins as an enterprise payment tool.
According to the post, the stablecoin platform will “utilize Swift’s existing API framework for banks to instruct Progmat to settle on blockchain.”
“[This addresses] AML/CFT, regulatory compliance, and operational setup challenges, while also considering the difficulties businesses face in using wallets. [Enabling] financial institutions to avoid operational redundancy with fiat currency transfers and minimize investment costs.”
Related: Japanese Bitcoin investor Metaplanet works with Ripple’s partner SBI
Bank of Japan rate hike topples Bitcoin
As of Sept. 3, Bitcoin BTC $54,096 price had fallen 6.5% with no sign of slowing. Traders attributed the downtrend to statements issued by the Bank of Japan (BoJ), rekindling fears of recession. In a document issued to a government panel , BoJ Governor Kazuo Ueda stated the central bank’s policy decision in July, indicating that the regulator would continue to hike interest rates.
The statement prompted traders with a stark reminder of late July, when the benchmark rise saw an unwinding of Japanese Yen carry trades and the destabilization of risk assets, like BTC.
Project Pax, backed by Japan’s top banks, seeks to streamline cross-border transactions using stablecoins, addressing inefficiencies identified by the G20.
Datachain, a blockchain startup focused on interoperability, announced the launch of Project Pax, a stablecoin platform to facilitate cross-border business settlements.
According to the Sept. 5 official post , Japan’s three largest banks, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, are backing the initiative.
The project is a collaboration between blockchain companies like Datachain, Progmat, and TOKI, with expectations of global participation from financial institutions.
Related: Japan’s Sakana AI partners Nvidia for research, raises $100M
Cross-border inefficiency
The $182 trillion global cross-border payments market faces substantial inefficiencies in speed, accessibility, and cost despite remaining a primary focus for financial institutions.
According to the post, the G20 identified these inefficiencies alongside the need for “significant improvements” to transparency.
“In this market, Progmat and Datachain aim to leverage stablecoins to enable fast, cost-effective, and 24/7 operational cross-border transfers.”
Related: Japan’s finance regulator calls for lower crypto taxes in 2025
Stablecoins as a tool for enterprise
Project Pax aims to address the inefficiencies highlighted by the G20 by integrating stablecoins into the international business settlement process
The initiative seeks to change the limited adoption of fiat-pegged cryptocurrencies for traditional business operations by using stablecoins as an enterprise payment tool.
According to the post, the stablecoin platform will “utilize Swift’s existing API framework for banks to instruct Progmat to settle on blockchain.”
“[This addresses] AML/CFT, regulatory compliance, and operational setup challenges, while also considering the difficulties businesses face in using wallets. [Enabling] financial institutions to avoid operational redundancy with fiat currency transfers and minimize investment costs.”
Related: Japanese Bitcoin investor Metaplanet works with Ripple’s partner SBI
Bank of Japan rate hike topples Bitcoin
As of Sept. 3, Bitcoin BTC $54,096 price had fallen 6.5% with no sign of slowing. Traders attributed the downtrend to statements issued by the Bank of Japan (BoJ), rekindling fears of recession. In a document issued to a government panel , BoJ Governor Kazuo Ueda stated the central bank’s policy decision in July, indicating that the regulator would continue to hike interest rates.
The statement prompted traders with a stark reminder of late July, when the benchmark rise saw an unwinding of Japanese Yen carry trades and the destabilization of risk assets, like BTC.
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Bitcoin set for sub $50K correction in September — Analysts
Declining trading volumes and slowing ETF inflows could set the stage for a correction below $50,000 before a rally to new highs.
Bitcoin could extend its summer crab walk into September, with a potential correction below the key psychological mark of $50,000.
The Bitcoin BTC $54,142 price has struggled to gain momentum during an over two-week downtrend. The token has fallen over 12% since Aug. 26 to trade at $56,133 as of 11:24 am UTC, according to Cointelegraph data.
This dynamic could set up Bitcoin for a correction below $50,000, according to Cyrus Ip, the head of content at Bybit exchange.
Ip told Cointelegraph:
“The data suggests this as the course of least resistance as things stand. However, these things can change very quickly if a new catalyst or headline emerges, especially in a low liquidity environment.”
Round psychological numbers like $50,000 invite significant investor attention. Crypto investor sentiment could take a significant hit and invite lower lows if Bitcoin price falls below $50,000.
Related: Crypto venture capital funding surges to $633M in August rebound
Bitcoin holds significant support at $55,000 and $52,000
Crypto investors seem to be taking a breather, based on the latest onchain exchange data.
Following August’s brutal $510 billion crypto market sell-off , open interest and trading volume have been in continuous declines for both Bitcoin and Ether ETH $2,290
, according to a Sept. 4 research report by Bybit and Block Scholes, which stated:“Open interest for perp options has been on a steady downward trend. In addition, we notice a parallel downward trend in trading volumes.”
While this could set the stage for a Bitcoin correction below $50,000, BTC still holds two significant support levels, explained Ip:
As for price targets, if you look at support levels, there are still $55,000 and $52,000 that are notable support levels before we reach $50,000.”
Related: Total crypto market sinks below $2T as analysts eye Bitcoin reversal below $54K
ETF outflows and historic data threaten sub-$50,000 BTC in September
September has historically been a month of downside volatility, with average Bitcoin returns at -4.69%, making it the most bearish month based on average returns, according to CoinGlass data.
The historic performance, along with a potential rate cut in the US, could set the stage for a correction below $50,000, before the real bull rally, according to Bitfinex analysts.
The analysts told Cointelegraph:
“This is not an arbitrary number but based on the fact that the cycle peak in terms of percentage return reduces by around 60–70% each cycle, and the average bull market correction has reduced as well.”
Negative inflows from the US spot Bitcoin exchange-traded funds (ETFs) are also pressuring Bitcoin prices.
Declining trading volumes and slowing ETF inflows could set the stage for a correction below $50,000 before a rally to new highs.
Bitcoin could extend its summer crab walk into September, with a potential correction below the key psychological mark of $50,000.
The Bitcoin BTC $54,142 price has struggled to gain momentum during an over two-week downtrend. The token has fallen over 12% since Aug. 26 to trade at $56,133 as of 11:24 am UTC, according to Cointelegraph data.
This dynamic could set up Bitcoin for a correction below $50,000, according to Cyrus Ip, the head of content at Bybit exchange.
Ip told Cointelegraph:
“The data suggests this as the course of least resistance as things stand. However, these things can change very quickly if a new catalyst or headline emerges, especially in a low liquidity environment.”
Round psychological numbers like $50,000 invite significant investor attention. Crypto investor sentiment could take a significant hit and invite lower lows if Bitcoin price falls below $50,000.
Related: Crypto venture capital funding surges to $633M in August rebound
Bitcoin holds significant support at $55,000 and $52,000
Crypto investors seem to be taking a breather, based on the latest onchain exchange data.
Following August’s brutal $510 billion crypto market sell-off , open interest and trading volume have been in continuous declines for both Bitcoin and Ether ETH $2,290
, according to a Sept. 4 research report by Bybit and Block Scholes, which stated:“Open interest for perp options has been on a steady downward trend. In addition, we notice a parallel downward trend in trading volumes.”
While this could set the stage for a Bitcoin correction below $50,000, BTC still holds two significant support levels, explained Ip:
As for price targets, if you look at support levels, there are still $55,000 and $52,000 that are notable support levels before we reach $50,000.”
Related: Total crypto market sinks below $2T as analysts eye Bitcoin reversal below $54K
ETF outflows and historic data threaten sub-$50,000 BTC in September
September has historically been a month of downside volatility, with average Bitcoin returns at -4.69%, making it the most bearish month based on average returns, according to CoinGlass data.
The historic performance, along with a potential rate cut in the US, could set the stage for a correction below $50,000, before the real bull rally, according to Bitfinex analysts.
The analysts told Cointelegraph:
“This is not an arbitrary number but based on the fact that the cycle peak in terms of percentage return reduces by around 60–70% each cycle, and the average bull market correction has reduced as well.”
Negative inflows from the US spot Bitcoin exchange-traded funds (ETFs) are also pressuring Bitcoin prices.
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India reconsiders foreign crypto exchange registrations: Report
India’s Financial Intelligence Unit is studying registration requests from four overseas crypto exchanges that were earlier banned for noncompliance with the country’s AML laws.
India’s Financial Intelligence Unit (FIU) is reportedly planning to approve two additional offshore crypto exchanges to restart operations in the country.
The FIU — responsible for Anti-Money Laundering (AML) compliance in India — is reportedly scrutinizing requests from four overseas crypto exchanges that were earlier banned for not adhering to the country’s AML regulations.
Following FIU registration approvals for Binance and KuCoin, “We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by the end of FY25,” local news media reported , quoting a source it did not identify.
“This would be after undergoing a thorough review of transaction visibility, suspicious transaction reporting, and other related issues,” the source added.
India restricted nine crypto exchanges for noncompliance
India’s FIU had blocked access to nine foreign crypto exchange’s URLs and mobile applications , including Binance, in the first week of January for failing to comply with the country’s AML norms.
So far, KuCoin and Binance have registered with India’s FIU. OKX, on the other hand, shut its operations completely, citing regulatory burden .
On Aug. 15, Binance announced it had registered as a reporting entity with India’s FIU after reportedly paying a $2 million penalty .
Binance’s announcement after registering as a reporting entity with India’s Financial Intelligence Unit. Source: Binance
Speaking to Cointelegraph, India Blockchain Alliance founder Raj Kapoor said that the clearance of two additional offshore crypto exchanges to resume operations in India will have a major impact on India’s cryptocurrency environment and a possible harbinger of this to come in the crypto space. The move is expected to increase market competition, providing Indian investors with better trading options and less dependencies.
Related: India mulls cross-border CBDC interoperability system
Looking ahead, Kapoor expects lower fees and enhanced features as well as innovative products. He also expects enhanced liquidity in the Indian cryptocurrency market, making it more appealing to institutional investors. However, this also has a flip side. Kapoor explained:
“Growing competition will undoubtedly put pressure on domestic exchanges to improve their products, potentially leading to regulatory issues as authorities strive to maintain compliance and protect investors in a quickly changing industry.”
Heavy dependence on supportive policies
India’s cryptocurrency ecosystem may also change as the Department of Economic Affairs (DEA) prepares a key consultation paper on cryptocurrency legislation . The paper, anticipated for release by October, will seek feedback from a range of stakeholders, with the government taking an active role in shaping the future of digital currencies in India.
Raj Karkara, chief operating officer of ZebPay crypto exchange, told Cointelegraph that India’s potential to become a major player in crypto is dependent on policies that support growth and technological development.
“By seeking inputs from industry experts, companies, and the public, the government is not only fostering transparency but also ensuring that the resulting regulations will be well-rounded and reflective of the needs and aspirations of all the parties involved.”
In April 2022, India established its tax regime on cryptocurrency transactions : a 30% tax on unrealized crypto gains and a 1% tax deducted at source for every crypto transaction. However, the Indian government has avoided regulating the sale and purchase of cryptocurrencies , choosing instead to focus on combating crypto-related money laundering and terrorism financing.
India’s Financial Intelligence Unit is studying registration requests from four overseas crypto exchanges that were earlier banned for noncompliance with the country’s AML laws.
India’s Financial Intelligence Unit (FIU) is reportedly planning to approve two additional offshore crypto exchanges to restart operations in the country.
The FIU — responsible for Anti-Money Laundering (AML) compliance in India — is reportedly scrutinizing requests from four overseas crypto exchanges that were earlier banned for not adhering to the country’s AML regulations.
Following FIU registration approvals for Binance and KuCoin, “We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by the end of FY25,” local news media reported , quoting a source it did not identify.
“This would be after undergoing a thorough review of transaction visibility, suspicious transaction reporting, and other related issues,” the source added.
India restricted nine crypto exchanges for noncompliance
India’s FIU had blocked access to nine foreign crypto exchange’s URLs and mobile applications , including Binance, in the first week of January for failing to comply with the country’s AML norms.
So far, KuCoin and Binance have registered with India’s FIU. OKX, on the other hand, shut its operations completely, citing regulatory burden .
On Aug. 15, Binance announced it had registered as a reporting entity with India’s FIU after reportedly paying a $2 million penalty .
Binance’s announcement after registering as a reporting entity with India’s Financial Intelligence Unit. Source: Binance
Speaking to Cointelegraph, India Blockchain Alliance founder Raj Kapoor said that the clearance of two additional offshore crypto exchanges to resume operations in India will have a major impact on India’s cryptocurrency environment and a possible harbinger of this to come in the crypto space. The move is expected to increase market competition, providing Indian investors with better trading options and less dependencies.
Related: India mulls cross-border CBDC interoperability system
Looking ahead, Kapoor expects lower fees and enhanced features as well as innovative products. He also expects enhanced liquidity in the Indian cryptocurrency market, making it more appealing to institutional investors. However, this also has a flip side. Kapoor explained:
“Growing competition will undoubtedly put pressure on domestic exchanges to improve their products, potentially leading to regulatory issues as authorities strive to maintain compliance and protect investors in a quickly changing industry.”
Heavy dependence on supportive policies
India’s cryptocurrency ecosystem may also change as the Department of Economic Affairs (DEA) prepares a key consultation paper on cryptocurrency legislation . The paper, anticipated for release by October, will seek feedback from a range of stakeholders, with the government taking an active role in shaping the future of digital currencies in India.
Raj Karkara, chief operating officer of ZebPay crypto exchange, told Cointelegraph that India’s potential to become a major player in crypto is dependent on policies that support growth and technological development.
“By seeking inputs from industry experts, companies, and the public, the government is not only fostering transparency but also ensuring that the resulting regulations will be well-rounded and reflective of the needs and aspirations of all the parties involved.”
In April 2022, India established its tax regime on cryptocurrency transactions : a 30% tax on unrealized crypto gains and a 1% tax deducted at source for every crypto transaction. However, the Indian government has avoided regulating the sale and purchase of cryptocurrencies , choosing instead to focus on combating crypto-related money laundering and terrorism financing.