The joint study between MUTB and Binance is aimed at driving mass adoption of Web3, according to Takeshi Chino, General Manager for Binance Japan. “Stablecoins fill an important financial services need and are crucial for the success of Web 3.0 adoption,” Chino said.
The stablecoins will be built on Progmat Coin, a compliant infrastructure platform owned by Mitsubishi. This platform has been developed to comply with the Payments Service Act and is backed by several major banks in Japan, including Mizuho Bank, SMBC, and SBI Holdings.
This move comes as part of Binance’s expansion strategy. Despite facing regulatory challenges in the U.S. and other major markets, Binance has been gaining entry into new jurisdictions. The exchange began operations in Japan in August and currently offers 34 cryptocurrencies in the country. After a three-month pause due to regulatory issues, it recently resumed operations in Belgium.
On Monday, it was reported that Binance is preparing to introduce this novel stablecoin to the Japanese market and the wider global cryptocurrency ecosystem in partnership with MUTB. The forthcoming digital currency will adhere to Japan’s stringent regulations on stablecoin issuance and management.
The introduction of this stablecoin is expected to diversify financial services in Japan, thereby increasing market competitiveness. If this innovation gains acceptance in Japan, it could align well with the Web3 policy advocated by the Japanese government.
This development comes as Japan’s financial sector anticipates an increase in stablecoin offerings linked to legal tender, including yen and the U.S. dollar, after 2024. Mitsubishi UFJ Trust Bank is reportedly considering issuing the necessary certification to approve this initiative.
Despite the global stablecoin market cap falling to $124.23 billion since May 2022, Binance continues to support several stablecoins, including TrueUSD (TUSD) and First Digital USD (FDUSD).
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Source: Cryptocurrency - investing.com
