Ever since its acquisition of the locally regulated platform Sakura Exchange, Binance has been actively working to establish its presence in the Japanese market.
Now, Binance announces its collaboration with Mitsubishi UFJ Bank, the nation’s largest bank, to conduct a study on the potential launch of a stablecoin.
Both companies aim to issue Japanese yen and other fiat-backed stablecoins to promote the adoption of Web3 technology in Japan.
MUFJ plans to develop the Progmat Coin platform as infrastructure for issuing stablecoins under Japan’s recently revised and enforced Payments Services Act, which allows Japanese banks and regulated crypto providers to issue stablecoins.
According to Binance’s announcement “The introduction of stablecoins into the Japanese market has the potential to catalyze diversification and efficiency in financial services, enhancing the overall competitiveness of the market. Furthermore, it aligns well with the Japanese government’s Web3 policy initiative.”
MUFJ also “announced various technical alliances with the aim of issuing stablecoins on various blockchains, including public blockchains such as Ethereum, and smooth mutual transfer and exchange.
“Stablecoins of various brands using the “Progmat Coin” platform will be able to be issued and distributed as soon as the handling intermediaries complete license registration with the relevant authorities.”
Binance did not immediately respond to a request for comment.
Orix Bank, a subsidiary of the financial services group Orix, reportedly plans to start testing yen, dollar, and other stablecoins in October. These coins will be backed by deposits and use the Japan Open Chain blockchain, developed by Tokyo-based G.U. Technologies and partners.
Orix plans to launch its stablecoin in 2024, targeting major Japanese corporations, such as automakers, to help them trade with multiple vendors at the same time.