According to a recent report by CoinPost, Mitsubishi UFJ Financial Group’s subsidiary, MUTB, has partnered with Binance Japan and Progmat to jointly consider the development of a new stablecoin. This collaborative effort aims to strengthen Binance’s global ecosystem and facilitate market expansion in Japan by leveraging the compliant Progmat Coin platform.

The proposed stablecoin is expected to be denominated in Japanese yen (JPY) and other major currencies like the US dollar (USD). As stablecoins linked to legal currencies are anticipated to be introduced in Japan post-2024, Mitsubishi UFJ Trust and Banking is actively exploring the possibility of issuing such certificates.

Mitsubishi UFJ Trust and Banking has been at the forefront of developing the Progmat Coin infrastructure, a stablecoin issuance framework that complies with the Amended Payment Services Act introduced in June 2023. Not only are they exploring stablecoin issuance on various chains, including Ethereum (ETH) and public blockchains, but they have also announced strategic technical alliances to facilitate seamless transfer and exchange.

To ensure regulatory compliance, stablecoins from multiple brands are expected to be issued and distributed once intermediaries complete the license registration process with the relevant authorities.

In August 2023, Binance Japan relaunched its services, becoming the largest crypto asset exchange offering in Japan with 34 supported crypto assets. As part of the Binance blockchain ecosystem, which caters to over 150 million users worldwide, Binance Japan aims to mirror the global version’s standards by gradually introducing services in the Japanese market after obtaining the necessary license registration under domestic regulations.

During an online business briefing in August, Binance Japan CEO Tsuyoshi Chino expressed enthusiasm about the stablecoin business and acknowledged the challenges imposed by Japanese regulations. While stablecoin issuers in Japan are currently limited to banks, fund transfer companies, and trust companies, Chino emphasized the potential for collaboration with Mitsubishi UFJ Trust and Banking to overcome these barriers. He highlighted the broader applications of Japanese yen-based stablecoins, including trade transactions and digital securities.

The collaborative effort between Mitsubishi UFJ Financial Group and Binance Japan aims to launch the stablecoin within the next year. However, to handle stablecoins in Japan, the newly established Electronic Payment Instruments Transaction Business requires a license, as introduced through the revised Payment Services Act. The companies involved are actively working towards fulfilling the necessary requirements to obtain this license.

As the partnership between Mitsubishi UFJ Financial Group, Binance Japan, and Progmat unfolds, market participants eagerly await the introduction of a stablecoin that promises to revolutionize the Japanese cryptocurrency landscape. By blending financial expertise, compliance, and technological innovation, this joint effort intends to pave the way for enhanced financial and digital asset services in Japan.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.