Soramitsu Leads Asia's Cross-Border Payments Revolution
Japanese fintech company Soramitsu is spearheading a significant project to revolutionize cross-border payments in Asia. The company, in collaboration with Mitsubishi UFJ Trust and Banking and other partners, is developing an exchange infrastructure to enable swift, low-cost transactions between India, China, Laos, and potentially Japan.
Soramitsu's ambitious plans come on the heels of Japan's revised payment laws, which now allow banks to issue stablecoins. This paves the way for yen-denominated stablecoins to debut by 2024, potentially joining the cross-border network.
The company has a proven track record in CBDC issuance, having supported the launch of Bakong in Cambodia and the Digital Lao Kip. With 8.5 million users and USD 15 billion in payments processed, Bakong's success underscores Soramitsu's capabilities. The new cross-border payment system aims to complete transactions in mere seconds, a stark contrast to the previous three to five-day wait.
Soramitsu has assembled a project team with Vivit and Tama University to build this network. The goal is to connect Japanese SMEs with individuals and businesses in Southeast Asia through a fast, low-cost payment system. Stablecoin exchange fees are expected to be in the tens of yen per transaction, a significant reduction from typical cross-border transfer fees. Additionally, the company plans to establish a Japanese exchange for stablecoins to facilitate QR code-based payments.
Soramitsu's cross-border payment system, utilizing CBDCs and stablecoins, promises to transform Asian financial landscapes. With Japan's new stablecoin regulations and Soramitsu's successful CBDC track record, the stage is set for faster, cheaper payments across the region.
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