Binance and Mitsubishi UFJ Trust Bank Collaborate to Launch Stablecoin in Japan

Binance Japan and Mitsubishi UFJ Trust Bank (MUTB) have announced a partnership to develop new stablecoins pegged to major currencies, including the Japanese Yen and the U.S. Dollar. This collaboration aims to enhance the Web3 ecosystem in Japan, with stablecoins playing a pivotal role in this initiative.

According to Takeshi Chino, General Manager for Binance Japan, the joint study is intended to promote the widespread adoption of Web3 technologies. He emphasized that “stablecoins fill an important financial services need and are crucial for the success of Web 3.0 adoption.”

The new stablecoins will utilize Progmat Coin, a compliant infrastructure platform developed by Mitsubishi, designed to adhere to Japan’s Payments Service Act and supported by several leading Japanese banks, such as Mizuho Bank, SMBC, and SBI Holdings.

This initiative is part of Binance’s broader expansion strategy. Despite navigating regulatory hurdles in the United States and other significant markets, the company has been effectively entering new regions. Binance commenced its operations in Japan in August and currently supports 34 cryptocurrencies within the country. Following a brief pause due to regulatory concerns, it also resumed operations in Belgium recently.

Reports indicate that Binance is set to launch its new stablecoin in Japan and beyond, in collaboration with MUTB. This digital currency will comply with Japan’s strict regulations governing stablecoin issuance and management.

The introduction of these stablecoins is anticipated to enhance the diversification of financial services in Japan, thereby contributing to a more competitive market landscape. If successfully adopted, this innovation could align with the Web3 policies promoted by the Japanese government.

Additionally, Japan’s financial sector is expecting a rise in stablecoin offerings linked to legal tender, such as the yen and the U.S. dollar, following 2024. Mitsubishi UFJ Trust Bank is reportedly contemplating issuing the necessary certification to facilitate this endeavor.

Despite the global stablecoin market experiencing a decrease to $124.23 billion since May 2022, Binance remains committed to supporting various stablecoins, including TrueUSD and First Digital USD.