Mitsubishi UFJ Trust and Banking Corporation (MUTB) and Binance Japan Inc have recently announced a joint study to explore the issuance of a new stablecoin pegged to fiat currencies, such as the Japanese Yen and other foreign currencies. This initiative aims to accelerate the mass adoption of Web3 in Japan.
MUTB, in collaboration with Binance Japan, is leading the development of the “Progmat Coin” platform, which serves as an infrastructure for issuing stablecoins in compliance with Japanese law. The platform is designed to facilitate the smooth transfer and exchange of stablecoins on various blockchains. Once intermediaries handling these stablecoins complete their license registration with the relevant authorities, various brands of stablecoins based on the “Progmat Coin” platform will be available for issuance and circulation.
Binance Japan, which launched its services for the Japanese market in August 2023, currently offers the largest number of tokens on any digital exchange in the country. Binance is a globally recognized blockchain ecosystem and cryptocurrency exchange with over 150 million users and more than 350 tokens. By completing additional license registration required by domestic regulations, Binance Japan aims to enrich its services to bridge the gap between Japan and global offerings in a compliant manner.
The joint study between MUTB and Binance Japan is focused on driving mass adoption of Web3 and fostering a thriving Web3 ecosystem in Japan through the issuance of new stablecoins using the Progmat Coin platform, which is compliant with domestic regulations.
Under the revised Payments Services Act enacted in June 2023, there are three options to legally issue stablecoins, classified as “Electronic Settlement Method.” The joint study will focus on “Trust-type” stablecoins, which offer advantages in terms of flexibility in issuance and usability.
The issuance structure of the stablecoin includes MUTB as the issuer, with underlying assets deposited in any financial institution and pegged to both Japanese Yen and foreign currencies. The stablecoin will be connected to a blockchain, potentially expanding to multiple chains like BNB Chain and Ethereum.
To conduct stablecoin operations in Japan, both MUTB and Binance Japan need to obtain the “Electronic Settlement Methods Transaction Business Provider” license under the revised Payments Services Act. The companies aim to commence stablecoin operations by the end of 2024, upon completion and approval of applicable regulatory processes.
The collaboration between MUTB and Binance Japan demonstrates their commitment to advancing Web 3.0 and fulfilling the growing need for stablecoins in the financial ecosystem. The new stablecoin is expected to offer benefits such as low-cost and instantaneous cross-border trade settlement for businesses and seamless cryptocurrency trading for retail investors. The partnership also leverages Binance’s strong position in the crypto assets trading world, ensuring the security and stability of the stablecoin within the ecosystem.
The Progmat platform, developed by Progmat Inc and MUTB, plays a crucial role in enabling the issuance of various stablecoin brands with flexibility and minimal risk of de-pegging. The technology alliance between Progmat, Mitsubishi UFJ Trust and Banking Corporation, Datachain, inc., and soramitsu has been working on several stablecoin projects, and this partnership with Binance Japan adds strength to their efforts. The joint study seeks to harness the opportunities provided by stablecoins to drive the adoption of Web3 and facilitate the smooth transition to a decentralized digital future.
Both MUTB and Binance Japan are optimistic about the potential of stablecoins and the Progmat platform in revolutionizing the financial services sector in Japan. They hope that this joint study will pave the way for the widespread adoption of Web3 and the realization of a thriving Web3 ecosystem in the country.
As the collaboration progresses, further announcements and developments are expected to be made, drawing attention to the advancements in stablecoin technology and the potential impact on the financial landscape in Japan and beyond.