Binance Japan partners with MUFJ on stablecoin development

Binance Japan partners with mega bank MUFJ on stablecoin development

Mitsubishi UFJ Trust and Banking Corporation, the largest banking group in Japan, and Binance Japan — the Japanese arm of the world’s largest cryptocurrency exchange — are collaborating on the issuance of fiat-pegged stablecoins, the two companies announced via a joint press release Tuesday.

See related article: MUFG enables bank-backed stablecoin issuance amid new Japanese regulations

Fast facts

• The partnership will use “Progmat Coin,” which is a platform led by Mitsubishi’s trust bank for stablecoin issuance and management. The platform, initially announced in February 2022, aims to support the issuance of Japanese Yen-pegged stablecoins on public blockchains.  
• Japanese regulators updated the nation’s stablecoin rules in June. 
• Progmat, Mitsubishi’s subsidiary behind the stablecoin platform, is backed by an alliance of major local banks including Mizuho Bank, SMBC and SBI Holdings. 
• With the study, both companies plan to launch new stablecoins pegged to the Japanese yen and other currencies. 
• “We believe that the new stablecoin from this collaboration will be a step forward in advancing the Web 3.0,” said Mitsubishi UFJ vice president of product and founder of Progmat Tatsuya Saito, in the press release. “The impact of having the most secure stablecoin functioning within this ecosystem is immeasurable.”
• Takeshi Chino, general manager of Binance Japan, said the partnership will play a “key role” in connecting Japan’s real economy, blockchain space and the global Binance ecosystem in the future. 
• “Stablecoins have important use cases in the broader financial ecosystem – from a lower-cost and instantaneous cross border trade settlement for business clients, to an on and off ramp to buy and sell other cryptocurrencies seamlessly for retail investors,” Chino explained.
• The joint press release stated that both companies plan on starting stablecoin operations by the end of 2024. 
• Binance launched its Japan subsidiary on Aug. 1, 2023, marking its re-entry into the country two years after receiving a warning from the local financial regulator for failing to comply with registration requirements. Binance acquired local regulated platform Sakura Exchange BitCoin in November last year, which has been rebranded to Binance Japan.
• With its launch, Binance Japan offered 34 tokens, which made it the largest exchange in Japan by token offerings. Those include Binance’s native token BNB, which was traded for the first time in Japan.
• Prime Minister Fumio Kishida, in power since late  2021, supports digital finance and Web3 adoption in Japan to reinvigorate the economy in what he has called “new capitalism.” Web3 refers to the latest wave of technology innovations utilizing blockchain technology, which includes cryptocurrencies, NFTs and the metaverse.

See related article: Binance Japan launches with 34 tokens, BNB debuts in the country