March 28, 2024
Binance and Others Explore New Stablecoins in Japan
Latest Cryptocurrency News

Binance and Others Explore New Stablecoins in Japan

Binance has announced a partnership with Japan’s Mitsubishi UFJ Trust and Banking Corporation (MUTB), the country’s largest bank, to explore the issuance of stablecoins in Japan. According to Binance Japan, they will conduct a joint study to potentially issue stablecoins backed by Japanese yen and other fiat currencies, to accelerate the adoption of Web3 technologies in Japan. The collaboration intends to make use of MUTB’s Progmat Coin platform, which is designed for stablecoin issuance.

MUTB will play a pioneering role in developing the Progmat Coin platform, aligning with Japan’s recently revised Payments Services Act, which permits Japanese banks and regulated cryptocurrency providers to issue stablecoins. Progmat Coin is versatile and can support stablecoin issuance on multiple blockchain networks, including Ethereum, Polygon, Avalanche, Cosmos, and BNB Chain. Binance Japan’s General Manager, Takeshi Chino, emphasized the importance of stablecoins in providing efficient cross-border trade settlement for businesses and enabling seamless cryptocurrency transactions for retail investors.

Tatsuya Saito, Vice President of Product at MUFG, estimates that Japan’s stablecoin market could potentially reach 5 trillion yen ($34 billion), equivalent to around 27% of the current global stablecoin market valued at $123.7 billion, as reported by CoinGecko.

Despite regulatory challenges in Western markets, Binance expanded its services to the Japanese market in August 2023, offering access to 34 tokens. Concurrently, Orix Bank in Japan is reportedly considering plans to introduce stablecoins. Orix aims to commence testing of stablecoins denominated in yen, US dollars, and other fiat currencies in October, with a planned launch in 2024. These stablecoins will be backed by fiat deposits and utilize the Japan Open Chain blockchain, developed by Tokyo-based G.U. Technologies and its partners.

Japan appears poised to integrate stablecoins into its payment infrastructure. In August, it was reported that Japanese blockchain startup Soramitsu was exploring the establishment of a stablecoin exchange to facilitate cross-border payments across Asian countries. Additionally, the Japanese government is contemplating allowing startups to raise public funds through the issuance of crypto assets and stablecoins.

Photo by Christiano Sinisterra

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