According to a recent report by CoinPost, MUTB, a subsidiary of Mitsubishi UFJ Financial Group, one of Japan’s largest financial institutions, in partnership with Binance Japan and Progmat, has announced the start of joint consideration for the development of a new stablecoin.
Leveraging the Progmat Coin platform, compliant with Japanese regulations, the collaborative effort aims to create a stablecoin that will serve as a core element in Binance’s global ecosystem and facilitate market expansion in Japan.
The proposed stablecoin is expected to be denominated in Japanese yen (JPY) and foreign currencies like the US dollar (USD).
Binance Japan’s Resurgence?
Per the report, stablecoins linked to legal currencies, such as JPY and USD, are anticipated to be issued in Japan post-2024. Mitsubishi UFJ Trust and Banking is exploring the possibility of issuing such certificates.
Mitsubishi UFJ Trust and Banking has been at the forefront of developing the Progmat Coin infrastructure, a stablecoin issuance framework compliant with the Amended Payment Services Act that took effect in June 2023.
In addition to issuing stablecoins on various chains, including Ethereum (ETH) and public blockchains, the institution has announced strategic technical alliances to facilitate seamless transfer and exchange.
Stablecoins from multiple brands are projected to be issued and distributed once intermediaries are responsible for their handling of complete license registration with the relevant authorities.
Meanwhile, Binance Japan, which relaunched its services in August 2023, two years after the Financial Services Agency (FSA) issued a warning to the exchange, currently handles 34 crypto assets, making it the largest offering in Japan.
The global version of Binance, a blockchain ecosystem encompassing one of the world’s largest crypto asset exchanges, caters to over 150 million users worldwide, offering access to more than 350 stocks.
The plan is to gradually introduce services in the Japanese market, mirroring the global version’s standards, upon completing the required license registration under domestic regulations.
Binance Japan CEO Champions Collaboration
During an online business briefing in August, Binance Japan CEO Tsuyoshi Chino expressed enthusiasm about the stablecoin business. He acknowledged the challenges imposed by Japanese regulations, limiting stablecoin issuers to banks, fund transfer companies, and trust companies.
However, he emphasized the potential of collaborating with Mitsubishi UFJ Trust and Banking to overcome these barriers. Chino highlighted the possibilities that Japanese yen-based stablecoins could offer beyond the demand for virtual currencies, including trade transactions and security tokens (digital securities).
The collaborative effort aims to publish the stablecoin within the next year. To handle stablecoins in Japan, a license for the newly established Electronic Payment Instruments Transaction Business, introduced through the revised Payment Services Act, is required.
According to CoinPost’s report, the companies involved are working toward fulfilling the requirements to obtain the license.
Featured image from Shutterstock, chart from TradingView.com