Binance looks to issue stablecoins in Japan with MUFG unit by end of 2024
Quick Take
- Binance Japan is co-studying the issuance of a stablecoin in partnership with MUFG as it re-enters the market.
Binance has partnered with a unit of Japanese bank MUFG to study the issuance of a new stablecoin pegged to fiat currencies, as the world’s largest cryptocurrency exchange re-enters the Japanese market.
Binance said today in a statement that Binance Japan Inc. and Mitsubishi UFJ Trust and Banking Corporation (MUTB) are conducting a joint study with the aim of issuing a stablecoin tied to fiat currency, including the Japanese Yen and other foreign currencies.
MUTB is exploring the possibility of using its platform, dubbed “Progmat Coin,” as infrastructure for stablecoin issuance, according to the statement. Both companies plan to commence stablecoin operations by the end of next year upon obtaining applicable regulatory approvals, they added.
The news comes after Japan’s parliament in June 2022 introduced a legal framework for stablecoins, guaranteeing that they are linked to the yen or another fiat currency and that holders have the right to redeem them at face value. The legal framework took effect this June.
"Stablecoins have important use cases across the broader financial ecosystem – from a lower-cost and instantaneous cross border trade settlement for business clients, to the facilitation of trading other cryptocurrencies seamlessly for retail investors — stablecoins fill an important financial services need and are crucial for the success of Web 3.0 adoption," Takeshi Chino, general manager of Binance Japan, said in the statement.
Tatsuya Saito, vice president of product of MUTB, said: "We believe that the new stablecoin from this collaboration will be a step forward in advancing the Web 3.0."
A re-entry into Japan
In November 2022, Binance acquired 100% of Sakura Exchange BitCoin — paving the way for it to be regulated by the Japan Financial Services Agency. Its re-entry into the market came after the JFSA issued warnings in 2021 against Binance, stating that the exchange was operating in the country without registration.
Binance Japan, which fully launched services last month, said that it aims to offer at least 100 tokens on its platform in the short term.
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