The partnership is also a significant advancement in the Japanese government’s effort to promote the adoption of blockchain technology and cryptocurrencies, and their wider adoption within and outside the country.
Binance is partnering with Japan Mitsubishi UFJ (MUFG) Trust Bank, a move completely in line with the Japanese government’s new Web3 policy. This collaboration aims to give rise to a new stablecoin, and the platform chosen for its development is the Progmat coin platform, a proprietary asset of MUFG. The platform diligently adheres to the strict Japanese regulations governing the issuance and management of cryptocurrencies.
In 2022, when the Japanese government banned non-banking institutions from issuing stable coins, a new strategy was devised to introduce bank-backed stable coins across various blockchain networks, including Ethereum, Polygon, Avalanche, and others. Powered by MUFG, As part of this broader strategy, the bank introduced Pragmat Coin just last year, with the key goal of providing an interoperable and universally accepted asset payment solution for both stablecoins and digital currencies.
its release stablecoin Represents a strategic move to diversify financial services within the Japanese crypto landscape. This innovative stablecoin is set to facilitate transactions in other major global currencies such as the Japanese Yen and the US Dollar. By doing so, it effectively extends the utility of cryptocurrencies beyond national borders, to international markets. In its release, Binance where did it go,
“This game-changing stablecoin will be spawned using the Progmat Coin platform owned and operated by Mitsubishi UFJ Trust Bank… The partnership is already in full swing, with the three institutions conducting a joint study to pave the way for the launch of the stablecoin. Their mission is to issue an innovative stablecoin that is capable of facilitating transactions not only in Yen (JPY) but also in stronger currencies such as the US Dollar (USD).
This partnership with Binance is also a significant advancement in the Japanese government’s effort to promote the adoption of blockchain technology and cryptocurrencies, and their wider adoption within and outside the country. The creation of stable coins and the establishment of strategic partnerships are important steps in achieving this broader goal.
A significant leap towards widespread cryptocurrency adoption
Japan is one of the first major economies to establish a comprehensive regulatory framework for stablecoins. The country is expected to see substantial growth in Japanese yen and US dollar pegged stablecoin offerings after 2024. The government is planning to issue necessary certificates and licenses to eligible entities to facilitate this growth.
This proactive stance by the Japanese government has the potential to have a profound impact on the Japanese Yen and the country’s growing cryptocurrency market. This represents a significant advancement towards the seamless integration of cryptocurrencies into the framework of traditional finance.
Stablecoins, known for their inherent price stability, offer many real-world applications ranging from facilitating everyday transactions and purchases of goods and services to facilitating cross-border money transfers to support loved ones. The ease with which stablecoins can be exchanged between users makes them an attractive option for various day-to-day financial transactions.
Temitope is a writer with over four years of experience writing across various fields. He has a special interest in the Fintech and Blockchain sectors and enjoys writing articles in those areas. He has bachelor’s and master’s degrees in linguistics. When he’s not writing, he trades Forex and plays video games.
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