Japan’s largest bank will launch cryptocurrency in collaboration with Binance

O Mitsubishi UFJ Trust and banking (MUTB), Japan’s largest financial institution, will join forces with Binance to create a stablecoin backed by the Japanese Yen.

The plans include launching stable coins that are also tied to assets or other fiat currencies. As reported by local news this Monday (25), the new cryptocurrencies can be backed by dollars and yen.

With 360 years of history and international operations, including in Brazil, MUTB is considered the fifth largest bank in the world by assets, with trillions of dollars in custody.

Binance Japan partners with Mitsubishi UFJ Trust and Banking

Launched in August 2023, Binance Japan is the brokerage unit in the country. The local branch provides access to various products, such as spot cryptocurrency trading and other services.

According to Japanese website Coinpost, the new partnership could further boost Binance’s business in Japan as the software issuing Progmat Coin’s stablecoins follows the rules of Japanese regulations that came into effect in June 2023.

The Japanese government has defined that it wants the Web3 reality, and the law defines the rules so that companies can operate in the local market. As Binance begins issuing stablecoins with support from the Mitsubishi Group, the exchange should be able to operate with support from regulators.

Only approved banks and institutions can issue stablecoins in Japan

What’s notable about Binance’s partnership with MUTB is not the fact that the institutions are working together to issue stablecoins, but rather that Japan’s new rules are concentrated in the hands of local banks.

In other words, Binance could not carry out the issuance on its own, even if the cryptocurrency broker was installed in the country.

It is worth remembering that Binance has had problems in the recent past when delegating the issuance of a stablecoin to a third party. In the US, Binance sought help from Paxos to issue its Binance USD (BUSD) stablecoin, which has been traded globally in recent years.

However, the US regulator ordered Paxos to stop issuing new coins to Binance, which drove down the cryptocurrency’s price. The broker itself has asked its customers to get rid of the currency, which has already lost trading pairs at several brokers.

In any case, if the new issuance follows local rules set by law, all indications are that Binance will be able to issue stablecoins in Japan, although it is not yet clear whether they will be available in other countries.

Source: Live Coins