Ready To Create New Stablecoin, Japanese Binance Collaborates With Mitsubishi UFJ Trust Bank

Binance Japan will launch a new stablecoin with local financial authorities. (Photo; Doc. ChainBulletin)

JAKARTA - Japan's Binance has announced a strategic partnership with the Mitsubishi UFJ Trust Bank, this step is in line with the Web3 policy recently adopted by the Japanese government.

This collaboration has an ambitious goal of creating new stablecoins, and the platform chosen for its development is the Progmat coin platform, which belongs to the MUFG Trust Bank. The platform has committed to strictly complying with Japanese regulations governing the issuance and management of cryptocurrencies.

In 2022, when the Japanese government imposed restrictions on non-banking institutions that issue stablecoins, a new strategy was designed to introduce stablecoins backed by banks on various blockchain networks, including Ethereum, Polygon, Avalanche, and others, all supported by MUFG.

One of the results of this comprehensive strategy is the Progmat coin, which was introduced last year with the main goal of providing universally operational and accepted payment solutions, both for stablecoins and digital currencies.

Issuance of this stablecoin is a strategic step to diversify financial services in the Japanese crypto ecosystem. This innovative stablecoin has been prepared to facilitate transactions in Japanese yen as well as major world currencies such as the United States dollar.

Thus, this stablecoin will effectively expand the use of cryptocurrencies at the international level. In an official statement, Binance stated:

"The game-changing stablecoin will be launched using the Progmat Coin platform, an innovation owned and operated by Mitsubishi UFJ Trust Bank... This partnership has been running smoothly, with all three entities jointly conducting studies to pave the way for the introduction of new stablecoins that can facilitate transactions not only in yen (JPY) but also in strong currencies such as the United States dollar (USD)."

This partnership with Binance is also an important step in the Japanese government's efforts to embrace blockchain technology and cryptocurrencies, with the aim of encouraging wider adoption both at home and abroad. The creation of stablecoins and the establishment of strategic partnerships is an important milestone in achieving this goal.

Important Steps Towards Stablecoin Adoption

Japan is known as one of the leading countries that has established a comprehensive regulatory framework for stablecoins. It is estimated that Japan will witness a substantial increase in stablecoin offerings related to Japanese yen and US dollars after 2024. The government plans to issue certificates and licenses required for eligible entities to facilitate this growth.

The Japanese government's proactive stance has great potential to influence Japanese yen and the country's growing cryptocurrency market. This is a significant step towards better integration of cryptocurrencies into conventional financial structures.

Stablecoin, known for its value stability, offers many real-world uses, from daily transactions to cross-border money transfers. Ease in stablecoin exchange between users makes it an attractive choice for various daily financial transactions.