Mitsui Sumitomo Group launches the Trinity project, utilizing stablecoins to achieve securities cross-chain "DvP cash against delivery settlement".

Japan is rapidly emerging to become a global leader in the stablecoin innovation space, with large Financial Institutions actively laying out Blockchain financial infrastructure. By the first half of 2025, the total issuance of Japanese stablecoins is expected to reach 1.2 billion USD. Cross-border payment pilot projects like PAX have been launched, and the JPYC yen stablecoin has also received official approval, supporting the core technology that transforms TradFi, for Cosmos's cross-chain communication protocol IBC and its modular architecture.

Led by major Japanese financial institutions such as Sumitomo Mitsui Banking Corporation (SMBC)), Progmat, Boostry, and Datachain, Trinity has become a globally focused project; Trinity is constructed with the assistance of TOKI, a cross-chain technology provider in the Cosmos ecosystem, aiming to achieve "Delivery versus Payment" (DvP) settlement for cross-chain securities tokens through stablecoin.

The first Japan stablecoin summit will take place on September 10th, where Maghnus Mareneck, Co-CEO of Interchain Labs and core contributor of IBC, along with Tatsuya Saito, founder and CEO of Progmat, will attend and deliver speeches. Key topics include the strategic significance of Japan's stablecoin pilot for the world, how Japan is leading the modernization of capital markets, and how it will serve as a reference example in the future for policy debates in the United States and the European Union.

In this context, Cosmos announced the official launch of the Trinity project, which not only symbolizes the further implementation of Japan's stablecoin infrastructure but also showcases a significant breakthrough in cross-chain settlement technology from concept to practice.

Current situation of the Japanese market: stablecoin and security token development running parallel.

After the amendment of Japan's "Payment Services Act", the Japanese stablecoin market has reached an important turning point. Banks and institutions can now issue stablecoins in a compliant and secure manner, paving the way for the mainstream adoption of digital assets. Sumitomo Mitsui Banking Corporation (SMBC) is one of them, having signed a memorandum of understanding with partners such as Ava Labs, Fireblocks, and TIS to explore the commercial application scenarios of stablecoins.

Japan's security token market is also rapidly expanding. In 2024, the total issuance of security tokens has surpassed 160 billion yen, and it is expected to grow further in 2025, covering more asset types including real estate collateral and movable collateral. Stablecoins, as a key tool to enhance settlement efficiency, reduce risks, and modernize financial infrastructure, are receiving significant attention from both the market and regulators.

Trinity Project: Promoting DvP cross-chain settlement with stablecoin

Project Trinity is jointly launched by SMBC Mitsui Sumitomo Banking Corporation, Daiwa Securities, Progmat, Boostry, and Datachain, aiming to achieve atomic swaps of security tokens and stablecoins across different blockchains, which is known as "Delivery-Versus-Payment (DvP)." This initiative represents a significant innovation in the infrastructure of the secondary market for security tokens in Japan.

Currently, most settlement systems rely on central institutions or offline reconciliation processes, which pose potential risks and delays. Through the integration of blockchain smart contracts and cross-chain protocols, Trinity is able to achieve real-time, synchronized, and intermediary-free settlement processes across multiple chains, laying the foundation for Japan's move towards 24-hour uninterrupted securities settlement.

The technical key of TOKI and IBC

The key technology of Trinity is the collaborative operation between chains. For example, the stablecoin of SMBC will be issued on Avalanche, while the security tokens of Progmat and Boostry are deployed on other chains. To achieve secure exchanges between these assets, reliable cross-chain infrastructure is required.

Toki is the core partner in solving this challenge. As a cross-chain intermediary platform within the Cosmos ecosystem, TOKI utilizes IBC and LCP technologies, combined with the middleware layer of Cross Framework, to achieve seamless and secure cross-chain messaging and atomic settlement. Unlike other closed cross-chain bridges, the design of IBC is permissionless and modular, offering higher scalability and security. This is also why many Financial Institutions, including SMBC, choose TOKI as their cross-chain solution provider.

The Trinity project is not only a specific practice of financial innovation in Japan but also an important part of the modernization wave in the global financial market. With the Japanese government and Financial Institutions placing emphasis on stablecoins and Blockchain infrastructure, the market is gradually moving towards standardization, immediacy, and disintermediation. In this transformation, the Cosmos technology stack and IBC protocol not only provide crucial support for Japan but also serve as a model for the global stablecoin market. The success of Trinity is expected to encourage more countries to follow suit and redefine the settlement methods for future securities and assets.

This article discusses that the Sumitomo Mitsui Group has launched the Trinity project, using stablecoin to achieve "DvP cash settlement" for securities cross-chain, which first appeared in Chain News ABMedia.