Binance Collaborates With Banking Giants to Launch Stablecoins in Japan
Binance has announced plans to launch stablecoins denominated in the dollar, euro, and yen in Japan.
The initiative, set to take place next year, is made possible through a partnership with the trust banking arm of Mitsubishi UFJ Financial Group (MUFG), Takeshi Chino, the general manager of Binance Japan, said in an interview with Bloomberg.
Binance Japan aims to introduce these three stablecoins initially, with the potential for additional offerings in 2024.
As part of the collaboration, Binance and MUFG have already begun the process of studying the issuance and implementation of these stablecoins.
The announcement comes after Japan passed a law clarifying the legal status of stablecoins back in June.
Stablecoins are believed to offer advantages such as faster money transfers and settlements.
Tatsuya Saito, MUFG's vice president of products, has said that Japan's stablecoin market has the potential to reach a substantial size of up to 5 trillion yen ($34 billion), approximately one-fourth of the estimated current global market.
MUFG has been engaged in discussions with multiple parties regarding the use of its blockchain platform, Progmat, to mint stablecoins tied to foreign currencies.
Meanwhile, to carry out its issuance plans, Binance will need to acquire a license in Japan as an electronic settlement methods transaction business provider, as outlined in the press release.
Once the stablecoins are introduced, users will have the ability to use them for cryptocurrency trading and potentially engage in payment services, according to Chino.
As reported, Binance officially entered the Japanese market with the launch of Binance Japan K.K. in August.
At the time, the exchange said it already offers Japanese crypto traders
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