Crypto News– MUFG stablecoin platform According to Nikkei’s report on Tuesday, the Mizuho Financial Group, one of Japan’s prominent banks, has decided to collaborate with Mitsubishi UFJ Financial Group (MUFG) on its stablecoin issuance platform, which is still in the developmental phase.
MUFG Stablecoin Platform Gains Participation from Mizuho Bank in Japan
Japan’s Mizuho Financial Group and Mitsubishi UFJ Financial Group (MUFG) are collaborating on the development of a new stablecoin that aims to offer an alternative to traditional trade finance, which can often be costly and time-consuming. This forthcoming platform has the capability to facilitate instant, cost-free settlement of cross-border transactions.
The operational management of this new network will be overseen by Progmat, a company set to be established next month through a partnership between Mitsubishi UFJ Trust, major Japanese banks, the Japan Exchange Group, and NTT Data. The platform’s development, spearheaded by Mitsubishi UFJ Trust and Banking, is anticipated to be realized as early as 2024.
Mitsubishi UFJ Financial Group is a significant Japanese financial services conglomerate with total assets approximating US$3.1 trillion. In parallel, Mitsubishi UFJ Trust and Banking, in collaboration with Web3 developer Ginco, will introduce Japan’s inaugural “crypto asset trust” designed to enhance custodial services for digital assets and address Japan’s complex token taxation challenges. This trust will advocate for a suitable taxation framework for crypto asset issuers and investors in Japan, fostering an environment conducive to healthy crypto investments.
Within this partnership, MUFG’s trust division will serve as the trustee, overseeing the custody of crypto assets held within the trust, while Ginco will provide crypto wallet and digital asset management services. This crypto asset trust will enable customers to invest in cryptocurrencies without directly engaging in transactions involving the underlying assets.
Japanese crypto advocates have frequently criticized the country’s taxation system as a hindrance to the establishment of domestic and international crypto development entities in Japan. Until June, Japanese corporations that issued and held crypto assets were subject to year-end market valuation and taxation on unrealized profits. However, a June 20 amendment to the tax law by Japan’s National Tax Agency exempted certain trusts from this taxation on crypto assets.
The MUFG-Ginco digital asset trust intends to commence operations by the end of the 2023 fiscal year, with the participation of eight Japanese digital asset firms, including venture capital firm Infinity Ventures Crypto and NFT developer Financie.
On a related note, KEB Hana Bank, one of South Korea‘s largest financial institutions, has announced its plan to offer digital asset custody services in the latter half of 2024. Hana will collaborate with crypto service provider BitGo Trust Company on this initiative.
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