Baar, Switzerland – TOKI, a leading provider of IBC-compliant cross-chain infrastructure, has made history by facilitating the first-ever cross-chain transfer of an ERC20-compliant stablecoin, backed by multiple Japanese banks, from Ethereum (Sepolia) to BNB Chain facilitate test nets using IBC.
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What is IBC?
IBC, or Inter-Blockchain Communication Protocol, acts as the backbone of blockchain interoperability, enabling secure and permissionless cross-chain interactions between more than 110 blockchain networks. With a monthly asset transfer volume of $2.7 billion, IBC has emerged as the go-to solution for seamless interoperability in the enterprise space, backed by the Interchain Foundation’s commitment to its development.
TOKI, equipped with IBC-compliant cross-chain infrastructure, led this milestone. In collaboration with Progmat, an issuance and management platform for RWAs and stablecoins, TOKI developed the cross-chain infrastructure needed to bridge Ethereum, BNB Chain and other major blockchains. Progmat, backed by Japan’s leading financial institutions such as MUFG, SMBC, Mizuho and JPX, aims to issue regulated stablecoins that comply with Japanese regulations.
This breakthrough not only extends IBC to non-Cosmos blockchains, but also introduces a new security model that combines SGX, MPC and ZKP technologies. By leveraging this architecture, TOKI ensures secure and efficient interchain transfers while keeping gas costs low, paving the way for widespread adoption of blockchain interoperability solutions.
Progmat’s stablecoins, pegged to currencies such as USD and JPY, are backed by fiat currency assets deposited in a trust bank, ensuring the safety of collateral assets.
Through a lock-and-mint mechanism that complies with ICS-20, the IBC token transfer module, TOKI facilitates the seamless transfer of stablecoins across multiple blockchains. The burn-and-mint mechanism, similar to Circle’s CCTP for USDC, further streamlines cross-chain native token swaps via IBC.
What’s next?
Progmat’s stablecoins comply with Japanese regulations. They will be pegged to currencies such as USD and JPY. One of the key features of Progmat is that the fiat currency assets used as collateral are 100% deposited in a trust bank, unlike other stablecoins, ensuring the safety of the collateral assets even if the stablecoin issuer goes bankrupt.
Stablecoins will be issued on Progmat’s stablecoin platform in the second half of 2024. In line with the launch of these stablecoins, TOKI will implement a burn-and-mint mechanism to facilitate cross-chain native token swap via IBC. Like Circle’s CCTP does for USDC, but open, and on IBC.
To learn more about TOKI’s security model and upcoming initiatives, check out their blog.
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About TOKI
TOKI is a pioneer in IBC-enabled cross-chain infrastructure, aimed at promoting seamless interoperability between blockchain networks. With a focus on security, efficiency and accessibility, TOKI drives innovation in the blockchain ecosystem, empowering developers and users worldwide. Visit TOKI’s website for more information.
About Progmat
Progmat is an issuance and management platform for RWAs and stablecoins, backed by Japan’s largest financial institutions. Through its partnership with TOKI, Progmat aims to revolutionize stablecoin issuance and cross-chain interoperability, paving the way for the widespread adoption of blockchain-based financial solutions.
About the Interchain Foundation
Interchain Foundation manages and promotes the interchain ecosystem and encourages innovation and collaboration between blockchain networks. With a commitment to open source development and community engagement, Interchain Foundation plays a critical role in shaping the future of blockchain interoperability.