In a significant partnership announcement, Binance Japan, the division of the world's largest crypto exchange, has revealed its collaboration with Mitsubishi UFJ Trust and Banking Corporation (MUFG), Japan's largest banking group, worth $3.1 trillion in total assets. The key focus of this collaboration is the development of a new stablecoin.
What set the stage for this monumental collaboration was Binance's reentry into the Japanese market in August 2023, after clearing regulatory challenges.
This initiative centers around the utilization of the Progmat Coin platform. Initially introduced in 2022, the platform's purpose is to facilitate the creation and management of stablecoins linked to the Japanese yen (JPY). This move follows regulatory updates made by Japanese authorities in June 2023, which have opened the door to stablecoin advancements.
More stablecoins bring in more fiat liquidity, which then...— CZ 🔶 Binance (@cz_binance) September 26, 2023
Progmat Coin has already garnered support from several local banks, including Mizuho Bank and SBI Holdings. Through this platform, Japanese banks will gain the ability to issue stablecoins on well-established public blockchains such as Ethereum and Polygon, with plans for expansion to other blockchain ecosystems in the future.
Both companies have set an ambitious timeline, with plans to commence stablecoin operations by the end of 2024. The primary objective of this partnership is the introduction of new stablecoins pegged to the Japanese yen and other global currencies. Head of Binance Japan sees this collaboration as a crucial link connecting Japan's real-world economy, the evolving blockchain space and the expansive global Binance ecosystem.