Mitsubishi UFJ Trust and Banking Corporation (MUFJ), Japan’s premier banking group, and Binance Japan, the local subsidiary of the world’s leading crypto exchange, have announced a joint venture to issue fiat-pegged stablecoins. This collaboration aims to leverage the “Progmat Coin” platform, spearheaded by Mitsubishi‘s trust bank, to facilitate the issuance and management of stablecoins pegged to the Japanese Yen on public blockchains.
- Progmat Coin Platform: Mitsubishi’s trust bank introduced the Progmat Coin platform in February 2022. This platform, backed by a consortium of prominent local banks such as Mizuho Bank, SMBC, and SBI Holdings, is designed to support the issuance of Japanese Yen-pegged stablecoins on public blockchains.
- Stablecoin Operations: Both Mitsubishi UFJ and Binance Japan have expressed intentions to commence stablecoin operations by the end of 2024. The collaboration aims to launch new stablecoins pegged to the Japanese yen and other global currencies.
- Binance’s Re-entry into Japan: Binance marked its return to the Japanese market on August 1, 2023, two years post receiving a warning from the local financial regulator. The global exchange acquired the locally regulated Sakura Exchange BitCoin in November of the previous year, subsequently rebranding it to Binance Japan. With its relaunch, Binance Japan introduced 34 tokens, making it the most extensive exchange in Japan based on token offerings.
Tatsuya Saito, Mitsubishi UFJ‘s vice president of product and Progmat’s founder, emphasized the significance of the collaboration, stating that the new stablecoin would play a pivotal role in propelling Web 3.0 advancements. Takeshi Chino, Binance Japan‘s general manager, echoed similar sentiments, highlighting the partnership’s potential to bridge Japan’s real economy with the blockchain domain and the broader Binance ecosystem.
Furthermore, the collaboration aligns with the vision of Prime Minister Fumio Kishida, who has been an advocate for digital finance and Web3 adoption in Japan since assuming office in late 2021. Kishida’s support for “new capitalism” underscores the importance of integrating technological innovations like blockchain, cryptocurrencies, NFTs, and the metaverse to rejuvenate Japan’s economy.