In a significant leap towards mainstreaming cryptocurrency in Japan, the renowned crypto exchange Binance is collaborating with MUFG and Mitsubishi UFJ Trust and Banking Corporation (MUTB), the nation’s foremost bank, to delve into creating stablecoins.
The Potential of Japan’s Stablecoin Market for MUFG
According to MUFG Vice President of Product, Tatsuya Saito, the stablecoin market in Japan possesses immense growth potential. He projects it could swell to a staggering 5 trillion yen (approximately $34 billion), constituting roughly 27% of the global estimated value of $123.7 billion, per CoinGecko data.
Binance Japan’s General Manager, Takeshi Chino, emphasized the growing significance of stablecoins within the financial sphere. He pointed out their integral role in offering cost-effective, swift cross-border trade settlements for businesses. Moreover, for retail investors they promise seamless cryptocurrency transactions.
MUFG isn’t new to the stablecoin arena. They’re already spearheading the Progmat Coin platform, crafted to serve as the backbone for stablecoin issuance. It adheres to the Payments Services Act of Japan. Revised recently, this legislation greenlights Japanese banks and vetted crypto entities to roll out stablecoins.
Progmat Coin facilitates stablecoin issuance across Ethereum, Polygon, Avalanche, and Cosmos. Yet, with the Binance partnership, an expansion to include the BNB Chain seems plausible.
The Regulatory Landscape and Binance’s Footprint
It’s worth noting that Binance, despite grappling with significant regulatory challenges in the West, made a decisive entry into the Japanese market in August 2023. Marking its debut, it showcased an array of 34 tokens, bolstering its presence.
Binance and MUFG aren’t the sole entities eyeing the stablecoin space in Japan. Reports suggest that Orix Bank is contemplating its stablecoin issuance. With plans to commence testing yen, US dollar, and several other stablecoins by October, they’re gearing up for a potential 2024 launch. These would be anchored by fiat deposits, leveraging the Japan Open Chain blockchain, a creation of Tokyo’s G.U. Technologies and its associates.
As Binance and MUFG pioneer stablecoin advancements in Japan, the horizon seems promising for crypto enthusiasts and investors. Their combined expertise and the increasing acceptance of stablecoins might very well be the catalysts propelling Japan into a new era of Web3 adoption.
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