Binance and Japan’s Largest Bank Partner to Pioneer Stablecoin Issuance – In a groundbreaking move, global crypto giant Binance is aligning with the Mitsubishi UFJ Trust and Banking Corporation (MUTB), Japan’s premier bank, to delve into stablecoin issuance in the country.
Binance Japan broke the news on Sept. 25, revealing a collaborative study with MUTB that centers on the potential launch of yen and other fiat-backed stablecoins. The objective? To fast-track the integration of Web3 in Japan. The companies are set to harness MUFG’s innovative stablecoin platform, Progmat Coin.
This venture marks a significant step for MUFG, as the bank takes the lead in crafting the Progmat Coin platform, positioning it as the foundational infrastructure for stablecoin issuance in Japan. This strategic move is in line with the nation’s recently revamped Payments Services Act, which came into effect in June. The updated legislation permits Japanese banks and regulated crypto entities to issue stablecoins.
Binance shared that the Progmat Coin platform, which currently supports stablecoin issuance on Ethereum, Polygon, Avalanche, and Cosmos, may be expanded to encompass BNB Chain through this partnership.
Highlighting the importance of stablecoins, Takeshi Chino, Binance Japan’s general manager, emphasized their pivotal role in the financial landscape. He outlined the benefits, from reduced costs and instantaneous cross-border trade settlements for businesses to streamlining crypto transactions for everyday investors.
Tatsuya Saito, MUFG’s vice president of product, provided a glimpse into the potential magnitude of Japan’s stablecoin market, estimating its growth to a whopping 5 trillion yen (approximately $34 billion). For perspective, this constitutes around 27% of the global market’s current valuation of $123.7 billion, as per CoinGecko.
Despite Binance encountering regulatory challenges in the West, the exchange made a notable entry into the Japanese market in August 2023, launching with 34 tokens.
But Binance isn’t the only entity setting its sights on Japan’s burgeoning stablecoin market. Reports suggest that Orix Bank, another significant player in Japan, is also considering stablecoin issuance. With plans to initiate tests for yen, U.S. dollar, and other stablecoins in October, Orix is targeting a 2024 launch. These stablecoins will be underpinned by fiat deposits and will leverage the Japan Open Chain blockchain, a product of Tokyo’s G.U. Technologies and its collaborators.
Furthermore, Japan’s blockchain startup Soramitsu is reportedly examining the feasibility of a new stablecoin exchange, aiming to develop a cross-border payment system tailored for Asian countries.
In a move to embrace the digital age, the Japanese government is also contemplating allowing startups to accumulate public funds via crypto assets and stablecoin issuance.
All in all, with these advancements, Japan is clearly positioning itself as a frontrunner in the stablecoin revolution, signaling a promising future for digital finance in the region.