Japan’s Largest Bank Teams Up with Binance Japan for Yen-Backed Stablecoin
Mitsubishi UFG Trust, the largest bank in Japan, has joined forces with Binance Japan to launch a new stablecoin backed by the Japanese yen. The collaboration aims to take advantage of the evolving regulatory environment surrounding stablecoins and tap into the potential of the Japanese market. The stablecoin will be issued on public blockchain networks like Ethereum and Polygon, while adhering to Japanese regulations.
Exploring New Opportunities
Mitsubishi UFJ Trust and Banking, along with Binance Japan and Progmat, are embarking on a journey to explore the creation of a new stablecoin. This collaboration comes as a result of the regulatory framework that allows banks, trust companies, and transfer operators to issue stablecoins. However, asset-circulating companies will still need a separate license for stablecoin issuance.
The Core of Collaboration: Progmat Coin
Mitsubishi’s Progmat platform aligns perfectly with the Revised Funds Settlement Act passed by the Japanese government in 2022, which recognizes stablecoins as a legitimate electronic payment method. The stablecoin issued through this collaboration will serve as a crucial component for Binance’s partnership with the global ecosystem and the Japanese market. A joint study is currently underway to further explore this opportunity.
Streamlining Foreign Trade Transactions
This development brings several advantages, including streamlining foreign trade transactions by bypassing Japan’s internal banking network. Companies can utilize the stablecoins issued through Progmat for various purposes, such as acquiring non-fungible tokens (NFTs) and digital securities.
Binance Japan’s Expansion Plans
Binance Japan is set to launch its services for the Japanese market in August 2023, offering support for 34 crypto assets. The platform intends to gradually expand its services, aligning itself with its global counterpart, once it completes the necessary regulatory license registrations in Japan.
Challenges and Potential of Yen-Based Stablecoins
During an online business briefing, Binance Japan CEO Tsuyoshi Chino highlighted the challenges posed by Japanese regulations and the high barrier to entry for stablecoin issuers. However, he also expressed his vision for Japanese yen-based stablecoins and their potential use cases in trade transactions and digital securities.
Hot Take: Diversifying and Enhancing the Market
The introduction of stablecoins into the Japanese market is expected to drive diversification and efficiency within the financial services sector. This initiative has the potential to enhance the competitiveness of the market as a whole.
By
By
By
By
By