There is an important development regarding Binance today. Mitsubishi UFJ Trust and Banking Corporation (MUTB) is taking an exciting collaboration step. It launched a joint effort with Binance and Progmat to explore the development of a new stablecoin. This initiative focuses specifically on the Japanese market. Thus, it aims to create a stablecoin that will play an important role in Binance’s global ecosystem. Leveraging the “Progmat Coin” platform, a stablecoin issuance and management platform that complies with Japanese law, this initiative aims to offer new stablecoins not only in yen (JPY) but also in foreign currencies such as the US dollar (USD).
Leading stablecoin innovation in Japan with Binance
The emergence of stablecoins linked to fiat currencies such as the yen and the US dollar is gaining momentum in Japan. Accordingly, the projections are expected to point to developments after 2024. In particular, ORIX Bank, a member of the ORIX Group, is considering the issuance of stablecoins. It is also noteworthy that stablecoins entered the Japanese market. Accordingly, it has the potential to increase diversity and efficiency in the financial sector. On the other hand, it ultimately increases the competitiveness of the overall market. Additionally, the Japanese government has moves in line with its Web3 policy. It is driving widespread adoption of stablecoins in Japan. Accordingly, this can complement and strengthen the country’s digital initiatives. Cooperation with Binance further details the issue.
Mitsubishi UFJ Trust and Banking Corporation led the development of the “Progmat Coin” infrastructure compatible with the “Revised Fund Settlement Law” that will come into force in June 2023. This infrastructure facilitates the issuance of stablecoins in accordance with regulatory requirements. It’s already designed for this. It is also a cornerstone for the stablecoin ecosystem in Japan.
Unleashing cross-chain potential with Progmat
The Progmat platform provides stablecoins on various chains, including public blockchains such as Ethereum (ETH). It is also establishing multiple technological partnerships to ensure seamless cross-chain transfers and exchanges. This collaborative effort paves the way for various stablecoin brands to be issued and distributed through intermediaries after successfully registering licenses with the relevant authorities.
Binance Japan, which started providing services to the Japanese market in August 2023, is making moves. Accordingly, it is quickly gaining prominence by managing 34 crypto assets, the highest number among Japanese platforms. It is part of the global Binance ecosystem serving more than 150 million users worldwide. On the other hand, Binance Japan is waiting for the necessary regulatory registrations to be completed. It also has ambitious plans to offer services in line with global standards in the Japanese market.
Breaking down regulatory barriers
Binance Japan CEO Takeshi Chino speaks on the subject. Accordingly, it underlines the difficulties associated with issuance of stablecoins under Japanese regulations. It notes that such issuances are generally limited to “banks, funds transfer agencies and trust companies.” This, he emphasizes, results in formidable obstacles for new entrants.
On the other hand, the cooperation between Mitsubishi UFJ Trust and Binance Japan is an important move. Accordingly, it is preparing to overcome these obstacles. It also points to the growing demand for Japanese Yen-based stablecoins for cryptocurrencies. It provides opportunities for development in various applications, including commercial transactions and digital securities.
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