Binance and Mitsubishi UFJ Trust to Launch Stablecoins in Japan
Cryptocurrency exchange Binance is teaming up with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to launch stablecoins in Japan by the end of 2024. The joint study between the two companies will explore the issuance of stablecoins pegged to fiat currencies, including the yen and other foreign currencies. Binance and MUTB aim to accelerate the mass adoption of Web3 in Japan through the issuance of new stablecoins. Japan recently allowed licensed crypto platforms to issue stablecoins, leading firms like Orix Corp. to consider introducing these tokens for their financial benefits, such as faster money transfers.
MUTB’s Role in Stablecoin Development
MUTB has been discussing the use of its blockchain platform, Progmat, to mint stablecoins tied to foreign currencies. Once intermediaries handling these stablecoins complete their license registration with authorities, the market can expect the issuance and circulation of various stablecoins. MUTB has also formed technology partnerships to facilitate the mutual transfer and exchange of stablecoin issuance on different blockchains, including public blockchains like Ethereum.
Binance’s Strategy in Japan
This partnership is part of Binance’s strategy to re-establish its presence in Japan. The exchange plans to enrich its services for the Japanese market while complying with local regulations. Stablecoins are seen as a solution for satisfying financial services needs in Japan, offering benefits like lower-cost cross-border trade settlement and seamless cryptocurrency trading for retail investors. According to Tatsuya Saito from MUTB, the stablecoin market in Japan could reach 5 trillion yen ($34 billion), making it an attractive opportunity for exchanges in the region.
Binance’s Comeback in Japan
Binance had previously faced regulatory challenges in Japan, leading to its temporary withdrawal from the market. However, the exchange has made efforts to comply with regulations and re-enter Japan. It acquired Sakura Exchange BitCoin, allowing it to be regulated by the Financial Services Agency (FSA). The Japanese division of Binance launched in August and aims to expand its token offerings from 34 to 100 in the near future.
Hot Take: Binance and MUTB Collaborate to Drive Stablecoin Adoption in Japan
Binance’s partnership with Mitsubishi UFJ Trust and Banking Corporation marks a significant step towards introducing stablecoins in Japan. By leveraging MUTB’s Progmat platform and complying with local regulations, Binance aims to accelerate the adoption of Web3 and bridge the gap between Japan and global cryptocurrency offerings. The issuance of stablecoins is expected to provide financial benefits like faster money transfers and cross-border trade settlement. With the potential for a 5 trillion yen market, Binance is positioning itself to capture a significant share of the stablecoin market in Japan.
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