Japan: Binance Partners with MUFG to Develop Stablecoin
Binance, the world’s largest cryptocurrency exchange, has teamed up with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to explore the possibility of creating a stablecoin tied to legal currencies. This collaboration marks Binance’s re-entry into the Japanese market. Binance Japan Inc. and MUTB are currently conducting joint research to develop a stablecoin pegged to fiat currencies, including the Japanese yen. MUTB is considering using its platform, Progmat Coin, as the infrastructure for issuing this stablecoin. Both companies aim to commence stablecoin operations by the end of next year, pending regulatory approvals.
Legal Framework for Stablecoins in Japan
The Japanese parliament implemented a legal framework for stablecoins in June 2022. The regulations require stablecoins to be linked to currencies such as the yen and allow holders to redeem them at face value. Takeshi Chino, general manager of Binance Japan, emphasized the importance of stablecoins in facilitating low-cost cross-border trading and supporting the adoption of Web 3.0. Tatsuya Saito, vice president of product at MUTB, expressed confidence that this collaborative stablecoin will contribute significantly to the progress of Web 3.0.
Binance’s Operations in Japan
In November 2022, Binance acquired Sakura Exchange BitCoin, paving the way for regulation by the Japan Financial Services Agency. This move followed warnings from the JFSA in 2021 regarding Binance’s unregistered operations in Japan. Binance Japan recently launched its services and plans to offer over 100 tokens on its platform, tripling its current selection. To ensure greater liquidity in the Japanese market, Binance intends to partner with local cryptocurrency exchanges. Binance founder and CEO Changpeng Zhao shared the news article about Binance’s expansion in Coinpost, a Japanese media outlet.
Hot Take: Binance Returns to Japan with Stablecoin Partnership
Binance’s collaboration with MUFG to develop a stablecoin tied to legal currencies marks its re-entry into the Japanese market. This move comes after the implementation of a regulatory framework for stablecoins in Japan. By partnering with MUTB and leveraging its Progmat Coin platform, Binance aims to offer a stablecoin that facilitates low-cost cross-border trading and supports the adoption of Web 3.0. Furthermore, Binance plans to expand its token offerings in Japan by partnering with local exchanges to ensure greater liquidity. This strategic move demonstrates Binance’s commitment to expanding its presence in one of the world’s largest cryptocurrency markets.
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