TOKI and Progmat to Build Cross-border Stablecoin Transfer Platform for Enterprises with IBC, Targeting Commercial Launch in 2025TL;DRTOKI, Progmat, and Datachain initiated Project Pax to build a cross-border stablecoin transfer platform for enterprises, with a goal of commercializing the platform in 2025.In this project, we will use stablecoins issued using Progmat's stablecoin platform. These stablecoins comply not only with legal regulations but also address accounting and tax perspectives, enabling enterprises to use them with confidence."Project Pax's cross-border transfer platform will utilize Swift's existing API framework for banks to instruct Progmat to settle on blockchain networks, addressing AML/CFT, regulatory compliance, and operational setup challenges, while also considering the difficulties businesses face in using wallets. (Source: press release)"TOKI provides cross-chain infrastructure using IBC with multi-prover security and unified liquidity pools to enable cross-chain stablecoin transfers between permissionless and permissioned blockchains.By integrating these regulated stablecoins and truly open and secure cross-chain messaging standards with the current cross-border messaging framework, We're enabling cross-border settlements for enterprises at the speed of the internet.BackgroundTOKI has partnered with Progmat, which was established by major Japanese banks and tech firms, to advance support for cross-chain stablecoin transfers. The development of smart contracts for this stablecoin has been nearly completed, with issuance planned for early 2025.TOKI and MUFG Unite to Bring Japanese Trust Bank-backed Stablecoins to Public BlockchainsThe main feature of the Progmat-issued stablecoin is its compliance with the Japanese stablecoin regulations that came into force in 2023.In addition, large Japanese financial institutions back Progmat and ensure its stablecoin is highly reliable, increasing its demand in enterprise use cases. Specifically, there is ongoing interest in its application for securities settlement, trade finance, and international remittances.In the meantime, TOKI, in partnership with Datachain, has contributed to IBC since 2020. We're the main contributors to ibc-solidity and developed various light clients for both permissionless and permissioned blockchains.With our expertise, we have explored how to make cross-chain stablecoin transfers operational. Now, we're excited to announce the launch of our new project.OverviewIn this initiative, TOKI and Progmat will shortly commence building a prototype leveraging the current messaging framework, with the goal of commercializing the cross-border stablecoin transfer platform in 2025.Project Pax's cross-border transfer platform will utilize Swift's existing API framework for banks to instruct Progmat to settle on blockchain networks, addressing AML/CFT, regulatory compliance, and operational setup challenges, while also considering the difficulties businesses face in using wallets.(Source: press release)This initiative aims to enable fast, cost-effective, and 24/7 operational stablecoin cross-border transfers, all while addressing challenges related to AML/CFT, regulatory compliance, and operational setup.TOKI is enabling cross-chain stablecoin transactions using IBC and unified liquidity pools. This is a key component of the cross-border stablecoin transfer project, represented as "Blockchain(s)" in the image above. We'll explore how these cross-chain transactions work in more detail later.Progmat's regulated stablecoin is being adopted because it will be the first stablecoin that enterprises can use with confidence, ensuring legal compliance while meeting tax and accounting standards. Although there are various stablecoins available today, their use is mainly limited to web3 or crypto-related applications. Progmat's stablecoin seeks to expand these applications into the enterprise sector, starting with cross-border transfers.Moreover, the platform will also support other stablecoins, such as USDC, to accommodate diverse requirements. For instance, an enterprise can send Progmat's stablecoin on Blockchain X, and the recipient can receive USDC on Blockchain Y.See more details in the press release: https://www.datachain.jp/news/progmat-and-datachain-launch-project-paxHow IBC and Multi-prover workFrom a technical standpoint, there are two key points in the cross-chain transfers of stablecoin: IBC and Multi-prover. Let's start with IBC.IBC stands as the most widely used, reliable, and universally adopted interoperability protocol in the world to date. According to the Cosmos Chain registry, more than 100 zones have been connected via IBC. As of June 2024, according to Map of Zones, the total value of IBC transfers has reached $1.1B in the past 30 days.IBC | HomeIBC allows for permissionless cross-chain transactions, making it the most secure and reliable cross-chain protocol. Since its launch in 2021, there have been no exploits. However, when expanding IBC to include more blockchains, such as EVM blockchains, high gas costs on those chains often pose a significant problem.TOKI tackles this issue with multi-prover security, combining TEE and ZK provers. The core idea is to leverage both provers to maximize security without sacrificing efficiency.This "multi-prover approach" is gaining traction in the industry, with leading crypto projects like Taiko and Scroll already adopting it. The key advantage of this approach is that it enhances security by using multiple proving methods. Even if one method is compromised, the overall system remains secure.In short, TOKI brings multi-prover security to IBC.Multi-prover for IBC Connection: Enhancing Security with a Combination of SGX, MPC and ZKPHere's how the verification process works when using both TEE and ZK provers:The source chain writes a commitment to send a packet to itself.The Relayer sends the commitment of step 1 and proof to the LCP node and ZK light client[TEE provers] Light client verification is performed in the multiple LCP nodes' enclave and generates a commitment indicating the verification result and proof.[ZK provers] The ZK light client verifies the commitment and generates a ZK-proof.The commitments and proofs generated in steps 3 and 4 are sent to the destination chain via the Relayer.The destination chain verifies the received commitments and proofsThis is how TOKI facilitates cross-chain transactions. By using a multi-prover approach, we ensure top-tier security and efficiency, making our solution ideal for large-scale cross-border stablecoin transfers.Future PlansTo achieve commercialization by 2025, we will promptly commence pilot tests with a prototype.As we progress towards commercialization, we will gradually increase the number of participating financial institutions and target regions, with the aim of establishing a global standard for international payment networks utilizing stablecoins and IBC with our multi-prover model.TOKI's Testnet LaunchIn addition to this initiative, TOKI is also launching its first-party application, which has just been launched on testnets between Ethereum and BNB Chain. This application is built on its cross-chain infrastructure and serves as a secure and cost-efficient cross-chain bridge, utilizing IBC and multi-prover security for enhanced reliability and cost-effectiveness.You can learn more about the testnet launch here:TOKI's Incentivized Testnet: IBC Bridge with Multi-Prover Security Combining TEE and ZKPFinal ThoughtsAlthough this project is still in its early stages, we believe it plays a crucial role in driving mass adoption by utilizing open and secure technology infrastructure in partnership with major financial institutions.TOKI aims to provide comprehensive infrastructure technology for all aspects of digital finance, extending beyond DeFi. We are committed to strengthening our partnerships with major institutions and delivering secure infrastructure to billions worldwide.What is Progmat?Progmat is leading the development and operational establishment of the "Progmat Coin" platform, which supports various blockchains, including permissionless (public) blockchains, as infrastructure for issuing stablecoins in compliance with stablecoin regulations. This platform not only complies with legal regulations but also addresses accounting and tax perspectives, enabling enterprises to use stablecoins with confidence. Additionally, various stablecoins issued using the "Progmat Coin" platform can be denominated in major fiat currencies such as JPY, USD, and EUR, allowing for flexible use domestically and internationally.【Progmat】Digital Asset PlatformTOKI and Progmat to Build Stablecoin Transfer Platform for Enterprises with IBC, Targeting… was originally published in Interchain Ecosystem Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.