Almost two months after returning to Japan, Binance is gearing up to explore the issuance of stablecoins.
Binance, a prominent global cryptocurrency exchange, has partnered with Mitsubishi UFJ Trust and Banking Corporation (MUTB), Japan's largest bank, to explore the possibility of issuing stablecoins in the Japanese market.
On September 25th, Binance's Japanese division revealed plans for a joint venture with MUTB to introduce yen and other fiat-backed stablecoins.
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This initiative comes on the heels of recent legislative changes in Japan, specifically the Payments Services Act, which now allows banks and regulated crypto providers to issue stablecoins. The duo will use a stablecoin issuance and management platform named "Progmat Coin," spearheaded by MUTB.
Tatsuya Saito, Vice President of Products at MUFG, mentioned Japan's significant potential for stablecoins. According to Saito, the stablecoin market in the country could swell up to $34 billion, constituting nearly 27% of the estimated global market value of $123.7 billion.
Binance's General Manager in Japan, Takeshi Chino, elaborated on the importance of stablecoins. He said they are essential for facilitating low-cost, instantaneous cross-border transactions for both businesses and retail investors.
Stablecoins fill an important financial services need and are crucial for the success of Web3 adoption.
Initially, the "Progmat Coin" platform will be compatible with Ethereum, but there are plans to expand it to include the BNB Chain in the future.
It is worth noting that Binance returned to the Japanese crypto markets at the beginning of August, two years after the crypto exchange received a regulatory warning from local authorities.
As Binance faces regulatory scrutiny in Western markets, its new stablecoin venture with MUTB represents a significant milestone, potentially laying the groundwork for broader Web3 adoption in Japan. The collaboration also positions Japan as a rising leader in stablecoin development and adoption. With multiple players showing interest in this space, Japan seems well-prepared to embrace stablecoins for a variety of financial applications.
