- Mitsubishi UFJ Trust and Binance Japan collaborate to develop stablecoins pegged to fiat currencies, promoting Web3 adoption in Japan.
- Stablecoin issuance aligns with Japanese regulations, providing a secure alternative in the volatile cryptocurrency market.
- The project’s potential expansion to multiple blockchains adds excitement to its prospects.
In the world today, web3 adoption is rapidly evolving, and with it, the ability for users to use cryptocurrencies instead of fiat is also increasing. As developments continue, Mitsubishi UFJ Trust and Binance Japan have joined hands to explore the formation of new stablecoins. Through a joint study, both companies are working towards issuing new stablecoins that are pegged to fiat currencies with a focus on the Japanese Yen and other foreign currencies. Let’s take a closer look at this new update.
Development of Stablecoin
Binance is one of the most robust companies in the world today and its latest collaboration with Mitsubishi UFJ Trust is one of a kind. Together, they plan to utilize the ‘Progmat Coin’ platform, a stablecoin issuance and management platform designed to adhere to Japanese regulatory requirements.
This joint study aims to facilitate the creation of new stablecoins to expedite the widespread adoption of Web3 technology in Japan.
MUTB is spearheading the development of the ‘Progmat Coin’ platform, which serves as an infrastructure for issuing stablecoins in accordance with the revised Payments Services Act, effective June 2023.
Additionally, MUTB has disclosed multiple technology partnerships aimed at streamlining the seamless transfer and exchange of stablecoin issuance across various blockchain networks. These include public blockchains like Ethereum. Once intermediaries handling these stablecoins have completed their licensing procedures with the relevant authorities, various stablecoin brands built on the ‘Progmat Coin platform will become available for issuance and circulation.
It is interesting to note here that the stablecoin issuance will comply with Japanese law and regulations. As the development continues, this collaboration will prove to be crucial in terms of accelerating the mass adoption of Web3 technology in Japan.
Role of Stablecoins
Given the volatile nature of cryptocurrencies, many individuals prefer not to invest. However, since countries like Japan are laser-focused on web3 adoption and technological advancements, it was imperative to provide users with an opportunity they simply could not resist. Stablecoins give one such option, and this development will prove crucial for the broader financial ecosystem.
The potential expansion of this collaboration to multiple blockchains, such as BNB Chain and Ethereum, adds zest to it. As Mitsubishi UFJ Trust and Binance Japan continue working on this project, users are anticipating how this will turn out.