Japan’s MUFG is seeking to issue stablecoins in Japan next year via a collaboration with crypto giant Binance.
Mitsubishi UFJ Trust and Banking Corporation (MUTB) – MUFG’s trust banking arm – and Binance Japan have launched a joint study with the aim of launching stablecoins linked to the Japanese yen and other fiat currencies abroad, according to a statement.
Both firms intend on commencing stablecoin operations by the end of 2024 after obtaining the relevant regulatory approvals, including the requirement to secure an electronic settlement license under Japan’s revised Payment Services Act.
MUFG’s Blockchain Platform
The issuance structure will involve trust-type stablecoins with Binance Japan acting as the entruster and MUTB acting as the trustee. The stablecoins will be issued on MUFG’s Progmat Coin platform.
«We have already announced the other stablecoin project with several Japanese financial institutions as joint issuance applicants, and we are working with several other partners equally on deals in addition to this announced initiative,» said Tatsuya Saito, Progmat founder and CEO as well as MUFG vice president of product.
«Among them, Binance has a strong position in the existing crypto assets trading world, and the impact of having the most secure stablecoin functioning within this ecosystem is immeasurable.»
