Binance, a global cryptocurrency exchange, is planning to launch stablecoins tied to the US dollar, euro, and Japanese yen specifically for the Japanese market. They intend to launch these stablecoins in 2024, in collaboration with Mitsubishi UFJ Financial Group’s trust banking division.
Takeshi Chino, the general manager of Binance Japan Inc., mentioned that they are exploring the possibility of introducing more such stablecoins in the future. The two companies have already begun working together to research and develop these digital tokens, as stated in their official announcement.
In June, Japan gave the green light for licensed companies to create stablecoins, which are digital tokens designed to provide benefits like faster money transfers and settlements. This move has prompted companies like Orix Corporation to consider launching their own stablecoins.
Mitsubishi UFJ Financial Group (MUFG) has been discussing with various parties the possibility of using its blockchain platform, Progmat, to mint stablecoins linked to foreign currencies.
MUFG’s vice president of product, Tatsuya Saito, believes that Japan’s stablecoin market has the potential to reach as much as 5 trillion yen ($34 billion). This would represent roughly a quarter of the current global stablecoin market.
According to the announcement, Binance needs to obtain a license in Japan to operate as a provider of electronic settlement methods for transactions. Once they have this license, users will be able to use stablecoins to trade cryptocurrencies and possibly make payments as well, explained Chino.
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