Stablecoins: The Key to Accelerate Web3 Adoption in Japan
Binance, a global crypto exchange powerhouse, has made strides in Japan by partnering with Mitsubishi UFJ Trust and Banking Corporation (MUTB). Announced on September 25th, the collaboration seeks to examine the issuance of yen and various other fiat stablecoins in Japan to bolster Web3 adoption.
MUFG’s Progmat Coin: Pioneering Stablecoin Infrastructure
MUFG, being Japan’s top bank, has spearheaded the development of the Progmat Coin platform, which stands as the backbone for stablecoin issuance as per the revamped Payments Services Act in Japan. With the new legislation in place since June, it has become feasible for Japanese banks and crypto service providers that are regulated to mint stablecoins.
Currently, the platform accommodates the issuance of stablecoins across Ethereum, Polygon, Avalanche, and Cosmos. However, with the budding Binance partnership, there might be an inclusion of BNB Chain soon.
Stablecoins: Bridging Traditional Finance and Crypto
For Binance Japan’s general manager, Takeshi Chino, stablecoins are not just digital tokens. They’re the linchpin for the expansive financial realm. These digital assets not only enable businesses to experience cheaper and swift cross-border trade settlements but also simplify crypto transactions for the everyday retail investor.
Furthermore, Tatsuya Saito, MUFG’s vice president of product, underlines the growth potential of Japan’s stablecoin market. According to his forecast, the market might swell to approximately 5 trillion yen ($34 billion), which is nearly 27% of the global market’s estimated value of $123.7 billion, as noted by CoinGecko.
Japan’s Stablecoin Landscape: A Promising Outlook
Binance, in spite of its regulatory challenges in the West, initiated its services in the Japanese market this August, launching with 34 tokens.
However, Binance and MUTB aren’t the only players eyeing the stablecoin space in Japan. Orix Bank is in the news, mulling over the issuance of stablecoins in the country. They’re slated to pilot test stablecoins pegged to yen and the US dollar in October, with a potential launch in 2024. Backing these stablecoins will be fiat deposits on the Japan Open Chain blockchain, a product of Tokyo-based G.U. Technologies.
The path seems clear for Japan to leverage stablecoins for payment solutions. Reports indicate that blockchain startup Soramitsu is pondering over a novel stablecoin exchange, targeting a cross-border payment mechanism for Asian nations.
Moreover, whispers in the corridors of power suggest that the Japanese government might soon greenlight startups to garner public capital through the issuance of crypto assets and stablecoins.
