Binance tames up with Japan’s biggest lender to launch stablecoins
Binance Japan is planning to launch stablecoins denominated in the dollar, euro, and yen in Japan in 2024. The crypto exchange aims to introduce these tokens, and possibly more, through its partnership with Mitsubishi UFJ Financial Group’s trust banking arm.
The two companies have initiated a joint study on the issuance of these stablecoins. They plan to leverage MUFG’s stablecoin issuance platform, Progmat Coin, for the issuance of stablecoins in Japan. This collaboration aligns with the country’s revised Payments Services Act, which permits Japanese banks and regulated cryptocurrency providers to issue stablecoins.
The recent legal revision in Japan primarily introduces a registration system for stablecoins circulation and reinforces anti-money laundering measures. Additionally, it enables overseas businesses to issue stablecoins in the country through custodians of digital assets.
Japan’s biggest lender, Mitsubishi UFJ Financial Group (MUFG), also unveiled plans to introduce and distribute stablecoins backed by banks on various public blockchains.
In collaboration with blockchain interoperability specialist Datachain and Toki, a cross-chain bridge, MUFG aims to facilitate seamless interoperability of these authorized stablecoins across multiple blockchains using its Progmat Coin protocol.
MUFG’s blockchain-powered platform is designed specifically for the issuance and management of stablecoins that are pegged to the Japanese yen at a 1:1 ratio. With Progmat Coin, the lender provides a secure solution that ensures stability and familiarity for users within the Japanese market.
MUFG will leverage Toki’s to enhance the transactional capabilities of its stable assets. The startup specializes in enabling asset transfers across various public blockchains such as Ethereum, Cosmos, Avalanche, and Polygon.
The new initiative builds upon the expertise of MUFG’s ST Research Consortium, which was formed four years ago with a focus on establishing security token standards. As part of its evolution, the consortium is now rebranded as the Digital Asset Co-creation Consortium to broaden its scope beyond security tokens. The consortium aims to innovate in various sectors, including stablecoins, non-fungible tokens (NFTs), crypto assets, and more.
Earlier in March, three Japanese banks announced plans to develop a payment system that integrates their stablecoins on a public blockchain while satisfying legal requirements.
Shortly after Japan overturned a ban on fiat-pegged cryptocurrencies, Tokyo Kiraboshi Financial Group, The Shikoku Bank, and Minna no Bank launched a stablecoin experiment. The trio cited few use cases and benefits, including general consumer use and business-to-business remittances. They also argue that each of the involved banks aims to issue and remit its own stablecoin that can be used in Ethereum wallets such as MetaMask while complying with Japan’s new fund settlement laws.
