- Binance collaborates with Japan’s leading bank, Mitsubishi UFJ Trust and Banking Corporation, to explore stablecoin opportunities.
- Recent legislative changes in Japan allow for the integration of stablecoins within the banking system and crypto establishments.
- Tatsuya Saito of MUTB projects Japan’s stablecoin market might surge to around $34 billion, nearly 27% of the worldwide estimate.
After recent legislative changes, the path is now clear for banks and certified cryptocurrency companies in Japan to launch stablecoins. Leading the charge, Binance, a renowned cryptocurrency exchange, and Mitsubishi UFJ Trust and Banking Corporation (MUTB), one of Japan’s most respected banks, have unveiled their collaborative research project. The announcement, made on September 25, 2023, highlighted the combined effort to establish stablecoins backed by traditional currencies, such as the Japanese yen. The partnership strives to accelerate the adoption of the Web3 protocol across Japan, with the Progmat Coin platform by MUTB playing a key role.
The enhanced Payments Services Act, updated in June, is the catalyst for this new era of financial technology in Japan. Taking a proactive approach, MUTB has already upgraded its Progmat Coin platform, making it compatible for the production of stablecoins on various frameworks, like Ethereum, Polygon, BNB Chain, Avalanche, and Cosmos.
Takeshi Chino, a key representative from Binance Japan, spoke about the immense potential stablecoins bring to the global financial landscape. He highlighted their role in enabling efficient and instant international trade settlements for businesses. Chino also emphasized the benefit for individual investors, simplifying their crypto dealings.
Tatsuya Saito, product vice president at MUTB, hinted at the vast potential of Japan’s stablecoin market. He projects its worth could rise to around $34 billion, making up almost 27% of the global market’s current value of $123.7 billion, as per CoinGecko statistics.
Previously, in August 2023, Binance marked its entry into the Japanese market by offering 34 tokens, even while navigating regulatory hurdles in other parts of the world.
In a similar development, Orix Bank of Japan is believed to be mulling over the launch of its own stablecoins. Their initial experiments are set to be centered around the yen and the U.S. dollar, eyeing a 2024 introduction. These stablecoins would be anchored to traditional currency deposits and supported by the Japan Open Chain blockchain, an innovation from Tokyo-based G.U. Technologies and its partners.
Japan Embraces Crypto in 2023
Japan’s approach to cryptocurrency has seen a shift in 2023, with the nation displaying a warmer embrace toward the digital asset industry. Regulatory changes emphasizing financial technology have been prominent, reflecting Japan’s interest in the growing sector and potential benefits it might bring.
One significant pointer to this favorable shift is the plan by Binance, a leading crypto exchange worldwide, to introduce stablecoins tied to major currencies such as the dollar, euro, and yen in the coming year. Furthermore, in a move encouraging the tech startup ecosystem, the Japanese government has eased financing restrictions.
Investment funds now have the liberty to offer financial backing using cryptocurrency assets, alongside the conventional stock options, expanding the horizons for young businesses in the country.