Three of Japan’s largest banks reportedly plan to collectively situation a yen-pegged stablecoin, contributing to the area’s rising adoption of crypto expertise inside its monetary infrastructure.
Nikkei reported on Friday that Mitsubishi UFJ Monetary Group (MUFG), Financial institution Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Financial institution plan to modernize company settlements and scale back transaction prices via a yen-based stablecoin undertaking constructed on MUFG’s stablecoin issuance platform Progmat.
The banks, which collectively serve greater than 300,000 company purchasers, intention to standardize the token to make it interoperable for funds inside and between firms. The consortium expects to roll out the stablecoin by the top of the yr.
Mitsubishi Corp. would be the first entity to implement the stablecoin for inner settlements. With over 240 subsidiaries globally, the corporate goals to streamline worldwide transfers on dividends, acquisitions and buyer transactions, saving on charges and administrative burdens.
If profitable, the undertaking might set up Japan’s first bank-backed stablecoin community beneath a unified framework
Cointelegraph reached out to MUFG, SMBC and Mizuho for feedback, however had not obtained a response by publication.
MUFG launched the Progmat stablecoin platform in June
The information follows the launch of MUFG’s stablecoin issuance platform “Progmat Coin.” In June, MUFG mentioned the platform could be utilized by banks in Japan to situation yen-pegged stablecoins on a number of public blockchain networks.
MUFG mentioned on the time that Progmat Coin will likely be used to facilitate the issuance of bank-backed stablecoins on Ethereum, Polygon, Avalanche and Cosmos. The financial institution mentioned it plans so as to add extra networks sooner or later.
On Sept. 26, Binance Japan teamed up with Mitsubishi UFJ Belief and Banking Corp. (MUTB) to explore the issuance of stablecoins utilizing Progmat Coin.
Binance Japan common supervisor Takeshi Chino mentioned stablecoins are essential for the broader monetary ecosystem and that these belongings will fill an essential function in monetary providers and are important for Web3 adoption.
Associated: Nomura moves to capture Japan’s booming institutional crypto market
Japan stablecoin race intensifies
The banks’ stablecoin efforts comply with institutional momentum on yen-pegged crypto belongings.
In August, Nikkei reported that Japan’s Monetary Companies Company (FSA) was preparing to approve the issuance of yen-based stablecoins. The report mentioned that the Tokyo-based fintech agency JPYC will lead the stablecoin rollout.
In the identical month, the Tokyo-based monetary providers agency Monex Group additionally introduced that it was contemplating launching a stablecoin pegged to the Japanese yen.
As Cointelegraph beforehand reported, Monex chairman Oki Matsumoto mentioned the corporate risked being left behind if it didn’t transfer into stablecoins. Nonetheless, he additionally acknowledged that issuance might require important infrastructure and capital.
Journal: Binance shakes up Korea, Morgan Stanley’s security tokens in Japan: Asia Express
