Binance partners with MUFG to issue a stablecoin in Japan by end of 2024

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Key takeaways

Binance Japan is exploring the possibility of issuing a stablecoin in Japan by the end of 2024.

The crypto exchange is working with MUTB, a unit of Japan’s MUFG. 

Binance Japan plans to issue a stablecoin in Japan

Mitsubishi UFJ Trust and Banking Corporation (MUTB) and Binance Japan Inc (Binance Japan) are currently working together to explore the possibility of issuing a stablecoin in Japan. MUTB is a unit of Japanese bank MUFG.

This latest cryptocurrency news comes as Binance looks to strengthen its position in the region after it re-entered the Japanese market. 

The stablecoin will be pegged to fiat currencies, including the Japanese Yen and other foreign currencies.

In November 2022, Binance acquired a 100% stake in Sakura Exchange BitCoin (SEBC), a regulated cryptocurrency exchange in Japan, marking its re-entry into the Japanese market. 

According to the press release, MUTB is currently leading the development of the “Progmat Coin” platform as an infrastructure for issuing stablecoins per the revised Payments Services Act enforced in June 2023.

The two entities plan to commence stablecoin operations by the end of 2024 after obtaining the necessary regulatory approvals. 

Binance Japan is now operational

This latest development comes roughly a month after Binance Japan began its operations. Binance Japan is currently offering 34 tokens, making it the largest number of tokens offered on any digital exchange in the country.

Takeshi Chino, general manager of Binance Japan, said in the statement,

“Stablecoins have important use cases across the broader financial ecosystem – from a lower-cost and instantaneous cross-border trade settlement for business clients to the facilitation of trading other cryptocurrencies seamlessly for retail investors — stablecoins fill an important financial services need and are crucial for the success of Web 3.0 adoption.” 

Tatsuya Saito, vice president of product of MUTB, added that,

“We believe that the new stablecoin from this collaboration will be a step forward in advancing Web 3.0.”

Binance Japan has indicated that it intends to offer a minimum of 100 tokens on its platform in the coming months.

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