• Japan’s biggest bank – MUFG – is reportedly considering issuing global stablecoins via its blockchain platform.
• These stablecoins would be pegged to the value of the Japanese yen and also to foreign currencies, such as the US dollar.
• To do so, MUFG intends to use its blockchain platform Progmat and it also believes that Japan could become a global hub for stablecoins.
Japan’s Biggest Bank Might Launch Global Stablecoins
Mitsubishi UFJ Financial Group (MUFG) – the largest finance institution in Japan – is reportedly considering issuing global stablecoins via its blockchain platform. The bank has previously revealed plans to introduce such tokens tied to the value of the Japanese yen and also to foreign currencies, such as the US dollar. To do so, it intends to use its blockchain platform Progmat, Vice President of Product Tatsuya Saito said.
The executive added that potential partners in this move are several local financial institutions, entertainment firms, and other non-financial businesses. Inquiries also come from foreign organizations, meaning Japan could become a global hub for stablecoins, Saito envisioned.
Regulation Around Stablecoins
Such financial products have been subject to enhanced scrutiny in Japan, especially after the collapse of algorithmic stablecoin UST last year which triggered multi-billion investor losses. The Japanese authorities recognized stablecoins as digital money but said they can only be issued by licensed banks, money transfer agents or trust companies.
Saito’s Praise for Regulation
Saito praised recently enforced legislation maintaining that it could bring investors more peace of mind when engaging with cryptoassets than before because entities now need proper licenses before issuing them.
Opportunity for Japan
As a result of this regulation combined with potential partnerships with domestic and foreign organizations mentioned earlier; MUFG believes that there could be an opportunity for Japan emerging as a global center for stablecoin issuance.