Binance’s Japanese division is partnering with Mitsubishi UFJ Financial Group’s trust banking unit to launch stablecoins pegged to the US dollar, euro, and Japanese yen in 2024. They plan to leverage MUFG’s existing stablecoin platform Progmat Coin to issue these tokens in compliance with Japan’s revised regulations that now allow regulated crypto providers to release stablecoins.
MUFG, Japan’s largest bank, also aims to distribute bank-backed stablecoins on various blockchains through partnerships with blockchain interoperability company Datachain and cross-chain bridge Toki. Their goal is to enable seamless transfers of these authorized stablecoins across multiple blockchains using MUFG’s Progmat Coin protocol.
This builds on MUFG’s digital asset consortium that was originally focused on security tokens but is now expanding into stablecoins, NFTs, and other crypto assets. It aligns with Japan’s regulatory changes that introduce a registration system for stablecoin circulation and anti-money laundering measures while allowing overseas companies to issue stablecoins through digital asset custodians.
Previously, three other Japanese banks announced plans to develop a stablecoin payment system on a public blockchain that satisfies legal requirements, citing benefits like consumer payments and business remittances. Each bank aims to issue its own compliant stablecoin that can be used in Ethereum wallets. Overall, Japan is embracing regulated stablecoins, both from domestic and foreign providers, through partnerships between cryptocurrency firms and traditional financial institutions.
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