Binance, in partnership with Mitsubishi UFJ (NYSE:MUFG) Trust Bank, is preparing to introduce a novel stablecoin to the Japanese market and the wider global cryptocurrency ecosystem. The forthcoming digital currency will be built on the Progmat Coin platform, a Mitsubishi-owned technology that adheres to Japan's stringent regulations on stablecoin issuance and management.
The three entities are currently conducting a joint study to facilitate the launch of this new stablecoin, which will not only be tied to the Japanese yen but will also incorporate foreign currencies such as the US dollar. The objective is to create a digital currency that can enable transactions in both yen and other strong currencies like the US dollar.
The introduction of this stablecoin is expected to diversify financial services in Japan, thereby increasing market competitiveness. If this innovation gains acceptance in Japan, it could align well with the Web3 policy advocated by the Japanese government.
This development comes as Japan's financial sector anticipates an increase in stablecoin offerings linked to legal tender, including yen and the US dollar, after 2024. Mitsubishi UFJ Trust Bank is reportedly considering issuing the necessary certification to approve this initiative.
The collaboration marks a significant step forward for both the Japanese and global cryptocurrency markets as they continue to evolve. The new stablecoin is positioned to play a crucial role in Binance's partnership with the Japanese market.
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