Binance and other top crypto exchanges eyeing new stablecoins in Japan

 

Japanese yen and other stablecoins denominated in other currencies may be issued in Japan, according to Binance and Mitsubishi UFJ Trust and Banking Corporation (MUTB).

The Mitsubishi UFJ Trust and Banking Corporation (MUTB), Japan's biggest bank, and cryptocurrency exchange Binance are working together to examine the possibility of issuing stablecoins in that country.

On September 25, Binance Japan unveiled a joint research that intends to have the businesses create fiat-backed stablecoins backed by the Japanese yen and other currencies in order to hasten the adoption of Web3 in Japan. The pair intends to use Progmat Coin, MUFG's stablecoin issuing platform.

Under Japan's newly updated and implemented Payments Services Act, the Japanese bank would be a pioneer in the establishment of the Progmat Coin platform as infrastructure for issuing stablecoins. The law, which became effective in June, permits Japanese financial institutions and licensed cryptocurrency companies to produce stablecoins.

In order to allow stablecoin issuance on networks like Ethereum, Polygon, Avalanche, Cosmos, and BNB Chain, Progmat Coin was created.

Stablecoins are essential for the broader financial ecosystem, according to a statement by Binance Japan general manager Takeshi Chino. He continued, "They also enable smooth crypto transactions for retail investors, in addition to offering lower-cost and fast cross-border trade settlement for enterprises.

Stablecoins fill an important financial services need and are crucial for the success of Web3 adoption.

 The vice president of product at MUFG, Tatsuya Saito, estimates that the size of the stablecoin market in Japan might reach 5 trillion yen ($34 billion). According to CoinGecko, this is equivalent to about 27% of the current estimated $123.7 billion worldwide market.

In August 2023, Binance began offering 34 tokens as part of the introduction of its services for the Japanese market. Binance has been subject to a great deal of regulatory attacks in the West.

Orix Bank in Japan is apparently considering plans to launch stablecoins there as well.

With a 2024 launch in mind, Orix plans to start testing yen, dollars, and other stablecoins in October. Using the Japan Open Chain blockchain created by Tokyo-based G.U. Technologies and others, they will be guaranteed by currency deposits.

Japan seems to be in a good position to introduce stablecoins for payment rails. According to a Cointelegraph report from August, the Japanese blockchain firm Soramitsu was looking into setting up a new stablecoin exchange as a means of cross-border payment for Asian nations.

According to reports, the Japanese government also intends to allow entrepreneurs to raise public financing by issuing stablecoins and crypto assets.