Binance, the world’s largest cryptocurrency exchange, has announced a partnership with a unit of the Japanese bank MUFG (Mitsubishi UFJ Financial Group) to create a new stablecoin pegged to fiat currencies. Additionally, this collaboration is based on the development of the Progmat Coin platform for issuing stablecoins within the framework of Japan’s recently revised Payment Services Act.
Collaboration with MUFG
MUFG, the Japanese bank, will lead the efforts to establish the infrastructure necessary for issuing stablecoins in Japan. Furthermore, the Progmat Coin platform developed under MUFG’s leadership offers a versatile infrastructure that supports stablecoin issuance on different blockchain networks. This infrastructure also enables stablecoins to circulate across various cryptocurrency networks, providing users with greater accessibility.
“The importance of stablecoins extends to a broader financial ecosystem.”Takeshi Chino, General Manager of Binance Japan
Importance of Regulation
Japan has strict regulations governing cryptocurrency and stablecoin transactions. Therefore, the partnership between Binance and MUFG underscores the need to operate in compliance with local regulations. Regulations such as the Payment Services Act serve as a foundation for monitoring and regulating stablecoin issuance.
Finally, the completion of this project is expected by the end of 2024, and it is believed that this stablecoin has the potential to provide greater access to the Japanese cryptocurrency market for more users.