Mitsubishi UFJ Trust Bank Partners with Binance Japan to Advance Stablecoin Adoption
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Mitsubishi UFJ Trust Bank is joining forces with Binance Japan to develop a compliant Japanese stablecoin using the “Progmat Coin” infrastructure.
The partnership aims to introduce stablecoins in Japanese Yen (JPY) and U.S. Dollars (USD) in 2024, potentially diversifying financial services and aligning with Japan’s “Web3 policy” for a tech-friendly environment.
Mitsubishi UFJ Trust Bank announced a partnership with Binance Japan to develop a compliant Japanese stablecoin. Utilizing the “Progmat Coin” infrastructure, this collaboration seeks to introduce a unique stablecoin that connects Binance’s global platform with the Japanese market.
The stablecoin will be available in Japanese Yen (JPY) and U.S. Dollars (USD), with expectations of multiple releases starting in 2024. Orix Bank, a member of the global financial Orix Group, is also exploring the issuance of stablecoins.
Stablecoins’ introduction into the Japanese market has the potential to diversify financial services, improve efficiency, and enhance market competitiveness in the country. It also aligns with the government-backed “Web3 policy,” promoting a technologically advanced and blockchain-friendly environment.
Mitsubishi UFJ Trust Bank has taken a leading role in developing the “Progmat Coin” infrastructure, compliant with the amended Fund Settlement Act that came into effect in June 2023. Besides issuing stablecoins on various chains, the infrastructure aims to facilitate cross-chain transfers and exchanges.
Numerous partnerships will back the project, and once intermediary organizations complete their regulatory registrations, different Stablecoins will be launched and circulated using the “Progmat Coin” infrastructure.
Binance Japan Eyes Stablecoin Market Amid Regulatory Challenges
In August 2023, Binance Japan made a notable debut in the Japanese market by providing services related to 34 cryptocurrencies. Binance Japan plans to further expand its services to meet the same standards as its global counterpart, but this expansion is dependent on the required regulatory licensing.
Takashi Chino, Representative of Binance Japan, previously mentioned the stablecoin venture during an online business briefing in August. He noted the challenges posed by Japanese regulations, which limit stablecoin issuance to “banks, fund transfer providers, and trust companies,” making it difficult for new entrants.
However, the collaboration with Mitsubishi UFJ Trust Bank aims to overcome these hurdles. Chino highlighted the potential for Japanese Yen-based stablecoins to circulate not only in the cryptocurrency demand sector but also in various use cases, including trade transactions and security tokens.
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