To
boost the adoption of Web3 technologies and digital assets in Japan,
cryptocurrency exchange Binance and Japan’s largest bank, the Mitsubishi UFJ
Trust and Banking Corporation (MUTB), have announced a joint study to explore
the issuance of stablecoins in Japan.
The
collaborative effort seeks to issue yen and other fiat-backed stablecoins to
revolutionize the financial landscape in the country.
The
initiative will leverage a platform called “Progmat Coin”. It is designed
to comply with Japanese regulatory standards for stablecoin issuance and
management. This endeavor aligns with Japan’s recently revised and enforced
Payments Services Act.
The
Payment Services Act permits Japanese banks and regulated crypto providers to
issue stablecoins. The “Progmat Coin” platform, developed by the
Japanese bank, will serve as critical infrastructure for issuing these
compliant stablecoins.
Initially
supporting stablecoin issuance on the Ethereum
blockchain, the platform’s capabilities may expand to include BNB Chain, with the
Binance partnership. This expansion could further diversify the stablecoin
offerings in Japan.
Takeshi
Chino, General Manager of Binance Japan, emphasized the importance of
stablecoins in the broader financial ecosystem. He noted that stablecoins
enable lower-cost and instantaneous cross-border trade settlements for
businesses.
It
facilitates seamless cryptocurrency transactions for retail
investors. Stablecoins are seen as a crucial component in the successful
adoption of Web3 technologies.
Optimism
Surrounds Japan’s Stablecoin Market Potential
Tatsuya
Saito, Vice President of Product at MUFG, expressed optimism about the potential
of Japan’s stablecoin market. It is estimated that its growth potential to reach
as high as $34 billion (5 trillion yen).
This
projection would account for approximately 27% of the estimated global
stablecoin market. It is currently valued at $123.7 billion, according to
CoinGecko.
Binance
has encountered regulatory challenges in Western markets. However, it took a
significant step towards serving the Japanese market by offering 34 tokens at
the launch of its services in August 2023.
Meanwhile,
Japan’s Orix Bank is considering plans to issue stablecoins within the country.
Orix aims to commence testing stablecoins denominated in yen, dollars, and
other fiat currencies in October, with a targeted launch date in 2024.
These
stablecoins will be backed by fiat deposits, utilizing the Japan Open Chain
blockchain…
