Cryptocurrency Exchange Binance Partners with MUFG Unit to Explore Fiat-Pegged Stablecoin in Japan
Crypto News – In a recent announcement, Binance, the world’s largest cryptocurrency exchange, revealed a strategic partnership with a subsidiary of Mitsubishi UFJ Trust and Banking Corporation (MUTB) to investigate the development of a new stablecoin tied to fiat currencies, marking its re-entry into the Japanese market.
Binance Japan Inc. and MUTB are jointly conducting a comprehensive study aimed at launching a stablecoin pegged to various fiat currencies, including the Japanese Yen. MUTB is actively considering utilizing its platform, referred to as “Progmat Coin,” as the fundamental infrastructure for issuing this stablecoin, as outlined in their joint statement. Regulatory clearances permitting, both entities plan to initiate stablecoin operations by the end of the following year.
This development follows Japan’s parliamentary introduction of a legal framework for stablecoins in June 2022, ensuring their alignment with the yen or other fiat currencies and guaranteeing holders the right to redeem them at face value. The regulatory framework came into effect in June.
Takeshi Chino, General Manager of Binance Japan, emphasized the significance of stablecoins in the broader financial landscape. He highlighted their utility in enabling cost-effective, instantaneous cross-border trade settlements for businesses and seamless cryptocurrency trading for retail investors, asserting their vital role in fulfilling financial service needs and supporting the adoption of Web 3.0.
Tatsuya Saito, Vice President of Product at MUTB, expressed optimism about the collaboration’s stablecoin, considering it a step forward in advancing the Web 3.0 movement.
Binance’s return to the Japanese market was made possible by its complete acquisition of Sakura Exchange BitCoin in November 2022, facilitating regulation by the Japan Financial Services Agency. This move followed warnings issued by the JFSA in 2021 against Binance, citing operations in the country without proper registration.
Binance Japan, having recently launched its full suite of services, aims to swiftly expand its platform by offering a diverse range of at least 100 tokens in the near term.
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