Crypto exchange Binance among firms eyeing new stablecoins in Japan

Crypto exchange Binance is partnering with Japans biggest bank, the Mitsubishi UFJ Trust and Banking Corporation (MUTB), to check out the issuance of stablecoins in Japan.On Sept. 25, Binance Japan announced a joint study that intends to see the business release yen and other fiat stablecoins to speed up Web3 adoption in Japan. The set strategy to use a platform called “Progmat Coin” which would be a Japanese regulatory-compliant stablecoin issuance and management system. The Japanese bank would be pioneering the development of the “Progmat Coin” platform as infrastructure for releasing stablecoins in accordance with Japans recently revised and implemented Payments Services Act. The legislation, which took effect in June, allows Japanese banks and managed crypto providers to issue stablecoins. Binance Progmat logos. Source: Binance PRThe platform supports stablecoin issuance on Ethereum however may be broadened to consist of BNB Chain through the partnership with Binance, Binance said in a declaration. In a statement the basic supervisor of Binance Japan, Takeshi Chino, stated stablecoins are essential for the more comprehensive monetary ecosystem. In addition to supplying lower-cost and immediate cross-border trade settlement for businesses, they likewise facilitate seamless crypto transactions for retail investors, he added.Stablecoins fill a crucial financial services need and are important for the success of Web3 adoption.According to Tatsuya Saito, MUFGs vice president of product, Japans stablecoin market has the possible to grow to as big as $34 billion (5 trillion yen). This equates to around 27% of the estimated existing worldwide market which is $123.7 billion, according to CoinGecko. Binance, which has faced a mountain of regulatory pressure in the West, started providing 34 tokens at the launch of its services for the Japanese market in August 2023. Related: Marketing business desires 90% of Japanese population on Web3Meanwhile, Japans Orix Bank is reportedly also weighing plans to release stablecoins in the country.Orix intends to start checking yen, dollar, and other stablecoins in October considering a 2024 launch. They will be backed by fiat deposits using the Japan Open Chain blockchain established by Tokyo-based G.U. Technologies and partners. Japan appears well poised to present stablecoins for payment rails. In August, Cointelegraph reported that Japanese blockchain start-up Soramitsu was exploring a new stablecoin exchange for a cross-border payment system for Asian countries.Earlier this month, the Japanese government supposedly prepared to allow start-ups to raise public funds through the issuance of crypto possessions and stablecoins. Magazine: Unstablecoins: Depegging, bank runs and other threats loom

Other Questions People Ask

What role is Binance playing in the issuance of new stablecoins in Japan?

Binance is partnering with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to explore the issuance of stablecoins in Japan. This collaboration aims to develop a platform called "Progmat Coin," which will facilitate the regulatory-compliant issuance and management of stablecoins. By leveraging this partnership, Binance seeks to enhance Web3 adoption in Japan and provide innovative financial solutions.

How does the new Payments Services Act impact stablecoin issuance in Japan?

The recently revised Payments Services Act, effective since June, allows Japanese banks and regulated crypto providers to issue stablecoins. This legislative change creates a favorable environment for firms like Binance and MUTB to launch stablecoins backed by fiat currencies. As a result, the act is expected to significantly boost the growth of Japan's stablecoin market, which could reach up to $34 billion.

What are the potential benefits of stablecoins for businesses and investors in Japan?

Stablecoins can provide lower-cost and immediate cross-border trade settlements for businesses, enhancing operational efficiency. For retail investors, they facilitate seamless crypto transactions, making it easier to engage in the digital economy. As Binance's Takeshi Chino noted, stablecoins are essential for the broader financial ecosystem and play a crucial role in promoting Web3 adoption.

What other firms are considering stablecoin projects in Japan alongside Binance?

In addition to Binance, Orix Bank is reportedly planning to launch its own stablecoins, with testing set to begin soon. Orix aims to issue yen, dollar, and other stablecoins backed by fiat deposits on the Japan Open Chain blockchain. This indicates a growing interest among various financial institutions in Japan to explore stablecoin opportunities, further solidifying the country's position in the global crypto landscape.

How does Binance's entry into the Japanese market align with its global strategy?

Binance's entry into Japan comes at a time when it faces regulatory challenges in Western markets. By launching services tailored for the Japanese market and introducing 34 tokens, Binance aims to establish a strong foothold in Asia. This strategic move not only diversifies its offerings but also positions Binance as a key player in the rapidly evolving landscape of stablecoins and digital finance in Japan.