As per recent reports, Mitsubishi UFJ Trust and Banking (MUTB), a subsidiary of Japan’s largest financial institution, Mitsubishi UFJ Financial Group, is partnering with Binance Japan to explore the creation of new stablecoins, including the Japanese yen and US dollars, following Japan’s recent introduction of stablecoin regulations. This announcement marks a significant stride in the world of cryptocurrency, promising to create a digital asset that bridges the gap between the Japanese yen (JPY) and other major global currencies like the US dollar (USD).
The project will leverage the “Progmat Coin” platform, a stablecoin issuance and management platform designed to comply with Japanese regulations. This innovative venture aims to establish a stablecoin that will serve as the linchpin for Binance’s expansion into both the global ecosystem and the Japanese market. The collaboration is currently in the preliminary study phase, with the ultimate goal of issuing a versatile stablecoin that caters to the needs of users across various currencies.
The move towards a stablecoin linked to a legal tender, such as the yen and USD, is anticipated to gain traction in Japan post-2024, according to a report by the Nihon Keizai Shimbun. Mitsubishi UFJ Trust and Banking are actively considering issuing the certificate required for this endeavour.
Introducing stablecoins into the Japanese market is poised to diversify the portfolio of financial services, potentially boosting overall market competitiveness. Furthermore, if these stablecoins gain popularity in Japan, they could seamlessly align with the Web3 policy championed by the Japanese government.
Mitsubishi UFJ Trust and Banking have taken the lead in developing the “Progmat Coin” infrastructure, designed to be compliant with the “Amended Payment Services Act” enacted in June 2023. This infrastructure allows for the issuance of stablecoins across various blockchain networks, including Ethereum (ETH). Technical collaborations have been announced to facilitate smooth transfers and exchanges, enabling stablecoins from different brands to be issued and distributed once intermediaries complete the necessary license registrations.
Binance Japan, slated to commence operations in August 2023, is offering access to a staggering 34 crypto assets, making it the largest crypto asset exchange platform in Japan. The parent company, Binance, boasts a global ecosystem, serving over 150 million users worldwide and handling more than 350 cryptocurrencies.
Binance Japan CEO, Tsuyoshi Chino, underscored the significance of the stablecoin initiative within Japanese regulations. He stated that banks, fund transfer companies, and trust companies are the only ones allowed to issue stablecoins, making it a formidable challenge for new entrants.
However, Chino expressed his fervent belief in overcoming these obstacles through collaboration with Mitsubishi UFJ Trust and Banking. He also highlighted the myriad use cases for yen-based stablecoins, extending beyond virtual currency demand to encompass trade transactions and digital securities.
