Collaborative Ambitions: Binance and MUFG's Pursuit of Stablecoin Issuance in Japan
Binance Japan and Mitsubishi UFJ Trust and Banking Corporation (MUTB) are collaborating to explore the issuance of stablecoins, aligning with Japan's ambitions in the Web3 space. The joint effort aims to develop stablecoins tethered to sovereign currencies like the yen while adhering to local regulatory frameworks. The ultimate goal is to drive the widespread adoption of Web3 technologies in Japan.
The initiative, however, is currently in the research phase and does not guarantee the actual issuance of stablecoins. Binance Japan must obtain the necessary regulatory approvals before proceeding. The evolving Web3 landscape in Japan, coupled with the recent stablecoin regulations, provides a conducive environment for such endeavors.
The involvement of a prominent traditional finance player like MUTB lends credibility to the project. MUTB leads a consortium of banks and trust banks planning to issue stablecoins on private and public blockchains through the Progmat Coin platform, which Binance Japan intends to leverage.
This platform operates under the new stablecoin rules introduced in June, allowing Japanese exchanges to apply for a specialized license for trading stablecoins, even those issued internationally like tether (USDT) and USD Coin (USDC). This regulatory framework opens doors for stablecoin projects to enter the Japanese market.
In contrast to some jurisdictions like the EU and the UK, which have taken a more cautious stance on stablecoin regulation, Japan appears to be embracing the technology. The country outlined a roadmap to foster Web3 growth earlier this year, emphasizing increased oversight for consumer protection.
MUTB asserts that the Progmat platform can help mitigate risks associated with stablecoins, addressing concerns raised by regulators. According to Tatsuya Saito, founder and CEO of Progmat Inc and vice president of product at MUTB, Progmat serves as a neutral infrastructure enabling the issuance of various stablecoin brands with high flexibility of use and minimal de-pegging risk.
Binance Japan and MUTB are exploring stablecoins that could potentially operate on diverse blockchains, including Ethereum and Binance's BNB Chain. The collaboration underscores Japan's proactive stance in embracing the potential of Web3 technologies and stablecoins.
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