Binance to Debut Stablecoins in Japan in Partnership with a Leading Bank
- Binance Japan has decided to debut stablecoins in the country to boost its operations.
- MUTB, a subsidiary of Mitsubishi UFJ Financial Group, will partner with the crypto firm to debut stablecoins.
- The stablecoins will be backed by legal currencies like yen and US dollars and will be released in 2024.
- Orix Bank of the Orix Group is also a part of the developments, as per reports from local media outlets.
Binance, the largest exchange in the world by trading volume, has plans to introduce stablecoins in Japan in partnership with a leading bank in the region. This step will boost the exchange’s operations in the country and also allow the firm to dominate the digital asset industry in the region.
According to a report from Coinpost, MUTB, a subsidiary of Mitsubishi UFJ Financial Group, the largest financial group in Japan headquartered in Chiyoda, Tokyo, will partner with Binance, helping the exchange introduce stablecoins in the region in line with the new regulations.
It is important to mention here that the leading exchange is qualified for issuance since it holds a license to operate in the region. More importantly, if the Financial Services Agency of Japan approves the license applications of other companies, they can also issue stablecoins in the region and challenge the dominance that Binance seeks to establish.
As per the report, Mitsubishi seeks to debut stablecoins in Japan backed by fiat currencies like yen and US dollars, which will be based on open blockchain networks like Ethereum and Polygon. The financial services firm developed the Progmat platform in line with the Japanese government’s “Revised Funds Settlement Act.”
Additionally, as per a report from the Japanese Economic Newspaper, the issuance of stablecoins, which are designed to be pegged to legal currencies such as yen and US dollars in Japan, is expected to be carried out after 2024, and the Orix Bank of the Orix Group is also a part of the developments.
“The introduction of stable coins into the Japanese market may facilitate the diversification and efficiency of financial services and increase the competitiveness of the entire market,” said a report while adding:
“If it becomes popular in Japan, it will also be expected to have a high affinity with the Web3 policy promoted by the Japanese government.”
As reported earlier by BitcoinWisdom, Binance officially resumed trading in Japan in August 2023 after the acquisition of Sakura Exchange Bitcoin, which was later termed Binance Japan.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
