Binance Collaborates with Mitsubishi UFJ Trust to Explore Stablecoin Issuance in Japan
Summary:
Binance is partnering with Mitsubishi UFJ Trust and Banking Corporation to investigate issuing stablecoins in Japan. Utilizing a platform called "Progmat Coin", they aim to issue yen and other fiat stablecoins to help progress Web3 adoption. The platform, compliant with Japan's revised Payments Services Act, supports stablecoin issuance on Ethereum. Binance Japan's general manager, Takeshi Chino, emphasized the significance of stablecoins for the broader financial ecosystem, including facilitating easier crypto transactions for retail investors. The Japanese stablecoin market could grow to as much as $34 billion, according to MUFG's vice president of product.
Binance is forging a collaborative partnership with Mitsubishi UFJ Trust and Banking Corporation (MUTB), Japan's largest bank, to explore the potential of issuing stablecoins in Japan. Binance Japan made an announcement on Sept. 25 about a joint investigation aimed at enabling the firms to dispense yen and other fiat stablecoins to expedite the penetration of Web3 in Japan. Their strategy involves the application of a platform named "Progmat Coin", envisaged to be a Japanese regulatory-compliant system for the issuance and management of stablecoins. MUTB is set to lead the initiative to develop the "Progmat Coin" platform, serving as a foundation to issue stablecoins in compliance with Japan's newly enforced Payments Services Act. As a result of the act launched in June, Japanese banks and sanctioned crypto providers are permitted to distribute stablecoins. Binance revealed in a statement that, although the platform initially supports stablecoin issuance on Ethereum, it might be broadened to include the Binance Coin (BNB Chain) through the collaboration. Takeshi Chino, the general manager of Binance Japan, stressed the importance of stablecoins for the global financial sector in a statement. In addition to offering a low-priced and instantaneous solution for cross-border trade settlements for businesses, they simplify crypto transactions for individual investors. He also emphasised the essential role stablecoins play in the triumph of Web3 penetration. Tatsuya Saito, MUFG’s vice president of product, suggests that Japan’s stablecoin market could potentially swell to $34 billion (5 trillion yen), accounting for about 27% of the estimated current global market which is valued at $123.7 billion, as reported by CoinGecko. Despite facing intense regulatory scrutiny in the West, Binance began offering 34 tokens when it introduced its services to the Japanese market in August 2023. In the meantime, Orix Bank in Japan is reportedly contemplating plans to issue stablecoins domestically. With a view to a 2024 launch, Orix intends to start testing yen, dollar, and other stablecoins in October. They plan on backing these with fiat deposits using the Japan Open Chain blockchain developed by Tokyo-based G.U. Technologies and its partners. With a robust framework, Japan seems well positioned to issue stablecoins for payment systems. In August, as Cointelegraph noted, Japanese blockchain start-up Soramitsu was investigating the launch of a new stablecoin exchange to create a cross-border payment system for Asian countries. Earlier this month, it was reported that the Japanese government was considering allowing startups to solicit public funds by issuing crypto assets and stablecoins.
Published At
9/26/2023 4:35:34 AM
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