Binance, the cryptocurrency exchange, is in partnership with Japan’s largest bank, Mitsubishi UFJ Trust and Banking Corporation (MUTB), to investigate the potential issuance of stablecoins within Japan. The exchange was experiencing some legal challenges in the West when it took this action.
Coinpost suggests the exchange collaborate with a financial institution to launch a new stablecoin in Japan. According to the Nikkei report, in Japan’s growing interest in stablecoin issuance, many financial institutions, including Orix Bank, intend to establish similar programs after 2024.
Orix seeks to begin stablecoin trials in October, with a 2024 launch date for yen, dollar, and other currencies. In partnership with Tokyo-based G.U. Technologies and other collaborators, stablecoins backed by fiat deposits are being created on the Japan Open Chain blockchain.
To enable the issuance of currency and other fiat stablecoins and to encourage Web3 usage in Japan, Binance Japan announced a collaborative research endeavor on 25 September. They want to use the “Progmat Coin” platform, a legal Japanese stablecoin issuance and management system.
Binance Japan’s Remarkable Advancements in Crypto Market
The bank also wants to create stablecoins across blockchain networks, including Ethereum, using Progmat Coin, and facilitate seamless exchange and transfer, and the bank has announced technological partnerships. Stablecoin issuance will commence once users on the Progmat Coin infrastructure obtain the necessary permits.
Binance Japan and the Japanese crypto market have forged a strong partnership, leading to notable advancements, and they have also offered domestic market services encompassing trading for an impressive range of 34 cryptocurrencies in August 2023. Over 150 million users worldwide use Binance, which manages over 350 cryptocurrencies.
Japan’s stablecoin market might eventually reach $34 billion, according to Tatsuya Saito, vice president of products at MUFG. As reported by CoinGecko, this amounts to almost 27% of the current estimated $123.7 billion worldwide market. Despite legal obstacles in the West, Binance started selling 34 tokens upon launching its Japanese services in August 2023.
The partnership between Mitsubishi UFJ Trust Bank and Binance Japan marks a significant stride in bringing stablecoins into Japan’s financial system. This collaboration has the potential to reshape the country’s economic landscape, giving the global trend towards digital currencies and blockchain technology.
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