Mitsubishi UFJ Financial Group Partners with Binance Japan and Progmat for Stablecoin Development
MUTB, a subsidiary of Mitsubishi UFJ Financial Group, has joined forces with Binance Japan and Progmat to explore the creation of a new stablecoin. This collaboration aims to develop a stablecoin that will play a central role in Binance’s global ecosystem and support its expansion in Japan. The proposed stablecoin is expected to be denominated in Japanese yen (JPY) and other major currencies like the US dollar (USD).
Binance Japan’s Comeback
Stablecoins linked to legal currencies, including JPY and USD, are expected to be issued in Japan after 2024. Mitsubishi UFJ Trust and Banking is exploring the possibility of issuing such certificates. The institution has been at the forefront of developing the Progmat Coin infrastructure, which complies with Japanese regulations.
In addition to issuing stablecoins on different chains, Mitsubishi UFJ Trust and Banking has announced strategic technical alliances to facilitate seamless transfer and exchange. Stablecoins from multiple brands are projected to be issued once intermediaries complete license registration.
Meanwhile, Binance Japan recently relaunched its services after a two-year warning from the Financial Services Agency. Currently offering 34 crypto assets, it is the largest offering in Japan. The plan is to gradually introduce services in the Japanese market upon completing the required license registration.
Binance Japan CEO Champions Collaboration
Binance Japan CEO Tsuyoshi Chino expressed enthusiasm about the stablecoin business and acknowledged the challenges imposed by Japanese regulations. However, he highlighted the potential of collaborating with Mitsubishi UFJ Trust and Banking to overcome these barriers. Chino emphasized that Japanese yen-based stablecoins could have applications beyond virtual currencies, including trade transactions and security tokens.
The collaborative effort aims to publish the stablecoin within the next year. To handle stablecoins in Japan, a license for the newly established Electronic Payment Instruments Transaction Business is required. The companies involved are working towards fulfilling the requirements to obtain this license.
Hot Take: Mitsubishi UFJ Financial Group and Binance Japan Team Up for Stablecoin Development
Mitsubishi UFJ Financial Group, Binance Japan, and Progmat have announced a partnership to develop a new stablecoin denominated in Japanese yen and major foreign currencies. This collaboration aims to strengthen Binance’s presence in Japan and comply with local regulations. The move aligns with the increasing interest in stablecoins linked to legal currencies in the Japanese market. With Binance Japan relaunching its services and Mitsubishi UFJ Trust and Banking leading the development of stablecoin infrastructure, this joint effort has the potential to make a significant impact on the crypto landscape in Japan.
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