Mitsubishi UFJ Trust To Issue Stablecoin To Speed Up Settlement Processes

The trust banking division of Mitsubishi UFJ, Japan's largest bank by assets, plans to use blockchain technology to trade securities and set up a stablecoin pegged to the Japanese yen as a payment instrument. Mitsubishi UFJ aims to speed up settlement processes, which currently take a couple of days, as well as save millions of dollars.

In this sense, the stablecoin will be similar to the JPM Coin of the American banking giant JPMorgan, which is focused on accelerating a large number of payments, such as bond transactions. Banks and other financial institutions will be allowed to issue stablecoins next year under new legislation aimed at limiting the issuance of such digital currencies by private companies.

Japan Trust Bank is promoting the use of blockchain-based securities in partnership with SBI and Daiwa Securities. For example, blockchain technology has turned relatively illiquid assets such as corporate bonds and real estate into products that can be purchased in small quantities, paving the way for retail investment.

Image: The Japan Times