Key Points:
- Binance Japan plans to launch stablecoins denominated in USD, EUR, and JPY.
- Collaboration with Mitsubishi UFJ Financial Group (MUFG) trust banking arm.
- Japan’s stablecoin market could reach up to 5 trillion yen.
Binance is actively pursuing the launch of stablecoins denominated in the US dollar, euro, and yen within the Japanese market in the coming year. This strategic move represents Binance’s entry into Japan’s emerging cryptocurrency sector.
Binance Japan aims to introduce these three stablecoin variants, with the possibility of adding more in 2024, through a collaboration with Mitsubishi UFJ Financial Group’s (MUFG) trust banking division. Takeshi Chino, the general manager of MUFG’s trust banking arm, confirmed that both companies have initiated joint research and development efforts for stablecoin issuance, as per an official statement.
Japan officially legalized stablecoin issuance by licensed entities in June, prompting various companies, including Orix, to explore the potential benefits of launching these tokens, such as facilitating faster money transfers and settlements. MUFG has also been engaged in discussions with multiple stakeholders regarding the utilization of its blockchain platform, Progmat, for creating stablecoins linked to foreign currencies.
Tatsuya Saito, MUFG’s vice-president of product, projects that Japan’s stablecoin market has the potential to expand to as much as five trillion yen (approximately S$45.92 billion), constituting roughly one-quarter of the estimated current global stablecoin market.
To proceed with their stablecoin issuance plans, Binance will need to secure a license in Japan as an electronic settlement methods transaction business provider, according to the release. This move aims to enable users to utilize stablecoins for cryptocurrency trading and potentially for various payment services, as stated by Takeshi Chino.
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