Binance Japan Inc and Mitsubishi UFJ Trust and Banking Corporation (MUTB) have commenced a joint study for the issuance of a new stablecoin pegged to fiat currencies, including the Japanese Yen and other foreign currencies. The collaboration seeks to bridge the gap between fiat currencies and the digital realm, with a focus on accelerating the uptake of Web3 technologies in Japan.
With its services commencing in August 2023, Binance Japan has introduced 34 tokens to the Japanese market – the most extensive offering in the country. On the global stage, Binance excels as a blockchain ecosystem and cryptocurrency exchange, boasting over 150 million users and supporting over 350 tokens. In their pursuit of compliance, Binance Japan is keen on obtaining additional licenses that will enhance their service offerings and align the Japanese market more closely with global trends.
The “Progmat Coin” platform, led in its development by MUTB, is designed as an avenue for issuing stablecoins in line with the stipulations of the revised Payments Services Act which came into force in June 2023. This partnership aims to introduce a myriad of stablecoins based on the Progmat Coin platform. However, their circulation awaits completion of license registration by intermediaries, which is essential for compliance with regulatory norms.
Tatsuya Saito, Vice President of Product at MUTB, envisions this collaboration as a significant leap towards the realisation of Web 3.0. He emphasised the neutral stance of Progmat, which ensures flexibility, minimises risks, and does not rival other stablecoin issuers. Notably, Saito underscored Binance’s robust positioning in the cryptocurrency sphere and the transformative potential of having a secure stablecoin within this ecosystem.
Echoing this optimism, Takeshi Chino, General Manager of Binance Japan, highlighted the invaluable role of stablecoins in the broader financial landscape, emphasising their potential in facilitating cost-effective cross-border trade settlements and promoting cryptocurrency trading among retail investors.
Both entities aim to kick off their stablecoin operations by 2024’s close, following Binance Japan’s successful attainment of the necessary regulatory approvals.
