Binance Japan is joining forces with Mitsubishi UFJ Trust Bank (MUTB) to create new stablecoins pegged to major currencies in Japan. These stablecoins will be tied to fiat currencies like the Japanese Yen and foreign currencies such as the U.S. Dollar.
The foundation for these stablecoins will be Progmat Coin, an infrastructure platform owned by Mitsubishi, that complies with Japan’s Payments Service Act. Progmat Coin has garnered support from several major banks in Japan, including Mizuho Bank, SMBC, and SBI Holdings.
In a statement released on September 26, both organizations announced the commencement of a collaborative study aimed at developing these stablecoins.
Once this study is completed and the necessary licenses are obtained, the stablecoins will become available to the public.
The partnership between MUTB and Binance seeks to promote the widespread adoption of Web3 technology and cultivate a thriving Web3 ecosystem in Japan.
Takeshi Chino, the General Manager for Binance Japan, highlighted numerous potential benefits and use cases for these stablecoins.
He emphasized their importance in enabling lower-cost and instant cross-border trade settlements for businesses and facilitating seamless cryptocurrency trading for retail investors. Stablecoins are seen as essential for the success of Web 3.0 adoption.
This partnership marks a significant milestone for Binance as it continues its expansion efforts. Binance initiated its operations in Japan in August and currently offers 34 cryptocurrencies in the country.
Despite facing regulatory challenges in the U.S. and other major markets, Binance is actively entering new jurisdictions. It recently resumed operations in Belgium after a three-month pause due to regulatory issues.
Contrary to reports, Binance CEO Changpeng Zhao has debunked claims that the exchange might delist stablecoins in Europe due to MiCA regulations. He asserted that Binance has partners in Europe launching fully compliant stablecoins.