Progmat, Binance Japan, And MUFG To Explore The Stablecoin Sector

Recent news from Japan says there has been a  partnership between Binance Japan and Mitsubishi UFJ Trust and Banking Corporation (MUFG) to hasten the adoption of Web3 in Japan. Through this collaboration, the two financial giants will investigate the issuance of new stablecoins utilizing the Progmat platform. This development has been commended as a crucial turning point in developing the Japanese digital asset market.

Investigation shows that the partnership is a calculated move to use cryptocurrencies and blockchain technology to advance financial innovation and accelerate the uptake of Web3 technologies in Japan. Various stablecoin brands built on the “Progmat Coin” platform will be made available for issuance and circulation as part of the effort.

The stability and security of these stablecoins will be guaranteed by the Progmat platform, renowned for its reliable infrastructure and compliance features. However, their issue will depend on intermediaries obtaining the required licenses and registering with the appropriate authorities, ensuring that all operations adhere to local laws.

MUFG/Binance Japan Reveals Reason For Partnership, Hints On Global Dominance

This partnership’s primary drivers include bridging the gap between Japan and the global Bitcoin sector and developing a legal and thriving digital asset market. While discussing this new development, MUFG’s V.P. of Product, Tatsuya Saito, said that Japan’s stablecoin market, can increase to 5 trillion yen (around $34 billion).

This totals around 27% of the expected international market, valued at $123.7 billion (according to data from CoinGecko). The team at Binance Japan has disclosed that it is prepared to expand its services and product lines as it completes the extra license registrations needed to comply with local Japanese laws.

Saito added that the strategy seeks to gradually shrink the gap between the Japanese and international cryptocurrency marketplaces while guaranteeing that Japanese customers have legal access to digital goods and services.

Recent Partnership Reveals the Involvement Of Traditional Banks, Others

The Japanese government has picked interest in this developing industry. News has it that they (the government) are working on permitting more startups interested in exploring the same opportunity to raise funds through the insurance of cryptocurrencies and other digital assets.

Orix Bank Japan has also hinted its intentions to consider going the path of MUFG: commence the issuance of stablecoins in Japan. Orix Bank is said to commence its demo on the United States dollars, Yen, and other relevant stablecoins in October while working on launching an entire operation in 2024.

The bank plans to launch a stablecoin officially backed by the Japanese “Open Chain blockchain,” created by G.U. Technologies and its corporate partners. While commenting on this trend, Cointelegraph’s Martin Young wrote that “this is a crucial step towards expediting the widespread adoption of Web3 technologies in Japan.”

A look into the operations of Progmat Coin shows that it is developed to support the issuance of stablecoin on the same network as Polygon, BNB Chain, Avalanche, and Cosmos. Meanwhile, Takeshi Chino, the General Manager at Binance Japan, said in an official statement that stablecoins are important for the wider financial sector.

However, Fumio Kishida, the Japanese Prime Minister, has since 2021 expressed support for the adoption of Web3 and digital assets finance in Japan. Fumio Kishida has once termed the digital assets investment a “new capitalism,” and has also described it as the next wave of innovation in any economy.