Capital markets News

MUFG launches blockchain utility tokens, wallet


MUFG’s Progmat blockchain token platform is launching its first utility token in conjunction with Tokyo Dome City, a shopping, amusement and entertainment complex associated with the stadium. The tokens provide access to deeply discounted offers. To date, MUFG’s Progmat platform has focused on security tokens, but it previously announced plans for Progmat Utility Tokens (UT) and multi-bank stablecoins.

When MUFG unveiled its utility token plans, it differentiated them from typical cryptocurrency tokens, given the aim is to provide shareholder rewards. Almost half of the listed Japanese firms provide stockholder benefits (yuutai). But the Progmat utility tokens can also be used for rewards independent from owning stock.

In the case of Tokyo Dome, these are non-fungible tokens (NFTs) that provide deeply discounted offers – 60% or more price reductions – for stays in the Tokyo Dome Hotel or visits to the Natural Hot Spring Spa.

Apart from the Tokyo Dome utility tokens, Progmant-based tokens have also been issued that offer discounted stays at the Kyoritsu Resort. However, these are associated with security tokens related to the resort issued on Progmat by Mitsui & Co Digital Assets back in March. Mitsui & Co has run at least two other real estate issuances on the Progmat platform in late 2021 and May this year.

At the same time, MUFG is launching a beta version of its token wallet. Progmat’s platform is permissioned and uses R3’s enterprise blockchain.

While the NFTs on the Progmat platform might be different from typical cryptocurrency NFTs, MUFG revealed plans on that front earlier this year when it announced a collaboration with Animoca Brands, the most prolific blockchain investor, particularly in the games and metaverse sector. However, details were not shared.

Many Japanese banks have been working on security tokens but are now looking at digital assets and cryptocurrency. That includes the recently announced plans for Nomura’s new digital asset subsidiary and its alliance with SBI on venture capital via crypto tokens. And last month, SMBC said it was building an ecosystem around web3.

Image Copyright: moovstock / 123rf