Minna Bank Explores Stablecoins: Japan’s Banking Giant Eyes Blockchain Breakthroughs
The Fukuoka Financial Group subsidiary, Minna Bank, Japan’s first digital-only bank, announced on Thursday that it is investigating the use of digital wallets and stablecoins. Supporting routine financial services and payments across the nation is the aim of this action.
The project is a component of a collaborative study with the Japanese IT company TIS, Fireblocks, and Solana Japan. Its objective is to evaluate the usefulness of decentralized wallets and stablecoins in actual banking.
The study will look at use cases such as daily digital payments, real-world asset trading, and cross-border payments. The technical viability of issuing stablecoins on the Solana blockchain will also be investigated. Additionally, it assesses how Web3 wallets might offer users more user-friendly financial experiences.
Why Are Stablecoins Becoming the Go-To Choice for Routine Transactions?
The move coincides with a boom in interest in and adoption of digital assets whose values are based on commodities and fiat currencies. According to data from a recent poll of 2,600 customers, stablecoins are being used more and more for routine financial transactions, according to CEX.IO, a cryptocurrency exchange based in London that was established in 2013.
According to the survey, 69% of participants use stablecoins more frequently now than they did a year ago. The explanation given by 54% of participants was lower fees when compared to traditional banks or money transfer services.
Fireblocks Exec: Japan’s Corporate Banking Drives Unique Stablecoin Adoption
As the total value of stablecoins exceeds $250 billion, financial institutions are stepping up their efforts to use them for anything from tokenized deposits to international settlements. The United States and other nations are rushing to enact stablecoin laws, while Hong Kong will implement its own regulations next month. Traditional financial institutions have started to introduce their own stablecoin programs in South Korea.
With big companies like SMBC also experimenting in the field, Japan is doing the same. However, according to Fireblocks’ Chief Strategy Officer and head of banking, Stephen Richardson, Japan‘s needs differ from those of the United States.
There’s a bigger and heavier emphasis on things like corporate and transnational banking. Japan has a lot of trade, and trade is made more effective by the easy and efficient movement of money.
Richardson
Richardson conceded that stablecoins are a hot topic, but he maintained that their usefulness distinguishes them from other overhyped coins. He likened advancements in programmable currency to the emergence of cellphones or LLMs.
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