Mitsubishi UFJ Trust and Banking, a prominent financial institution in Asia, is exploring the possibility of creating a new stablecoin in collaboration with Binance Japan and Progmat. The financial institution is highly ranked and headquartered in Asia.
Reported by an Asian local media outlet, Mitsubishi UFJ Trust and Banking intends to utilize the Japanese stablecoin issuance and management platform known as ‘Progmat Coin’ for this project. The institution has also embarked on a collaborative study towards the project and aims to align the stablecoin with the Japanese market.
Furthermore, the financial firm expressed its intention to “issue a new stablecoin that is not only denominated in yen (JPY) but also foreign currencies (USD) such as the US dollar.”
Meanwhile, a key requirement for issuing a stablecoin in Japan involves getting the “Electronic Payment Instruments Transaction Business” license newly established under the revised Payment Services Act.
Additionally, the new stablecoin will be deployed on various chains including public chains, and will be issued and distributed once the institutions handling them complete license registration with the relevant authorities.
Interestingly, in addition to Mitsubishi UFJ Trust and Banking, Orix Bank is also considering issuing a stablecoin. In 2024, it is predicted that several Stablecoins pegged to the Japanese yen and USD will be issued.
The Binance Japan CEO Tsuyoshi Chino acknowledged that the collaboration will bring about a break in the barrier associated with stablecoin issuers being limited to banks, fund transfer companies, and trust companies. Meanwhile, earlier in an August business briefing, the CEO mentioned the stablecoin business.
Additionally, he believes that Japanese yen-based stablecoins can serve not only the virtual currency demand but also use cases such as trading and security tokens.
Binance Japan was inaugurated in August 2023, targeting the Japanese market and commencing with 34 tokens available for spot trading. Existing customers residing in Japan were sent a migration process following the launch. Binance Japan offers the highest number of tokens compared to other digital currency exchanges in the country.
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