[NEWS] Binance to issue Japanese yen stablecoin in partnership with Mitsubishi UFJ Trust and Banking Corporation

Binance Japan announced on the 26th that it plans to issue a Japanese yen stablecoin. It will partner with Mitsubishi UFJ Trust and Banking Corporation to utilize the Progmat Coin platform, which is a stablecoin issuance and management platform.

Through this joint study, the goal is to issue a new stablecoin for both yen loans and foreign currencies, and to contribute to the widespread adoption of Web 3.0.

Mitsubishi UFJ Trust and Banking Corporation is developing Progmat Coin as infrastructure for issuing stablecoins in a form that complies with the revised Payment Services Act that came into effect in June this year. It has also announced various technical collaborations with the aim of issuing stablecoins on various blockchains, including Ethereum (ETH), and smoothly transferring and exchanging them.

Various brands of stablecoins using the Progmat Coin platform will be able to be issued and distributed as soon as the intermediaries that handle them complete their license registration with the relevant authorities.

Binance entered the Japanese market in August this year by handling 34 brands, the largest number in Japan.

The global leader, Binance, is the world's largest cryptocurrency exchange, handling 350 crypto assets. It has more than 150 million users around the world. It plans to gradually roll out services equivalent to the global version in the Japanese market.

Through this partnership with Mitsubishi UFJ Trust and Banking Corporation, Binance Japan will issue a new stablecoin in accordance with domestic regulations, taking advantage of the world's largest global ecosystem, as one of the stablecoin brands using Progmacoin.

The revised Payment Services Act prescribes three types of stablecoins as electronic payment methods: "bank deposit type", "fund transfer type", and "trust type". At present, it is planned to create a "trust type" stablecoin, which is considered to have the most flexible design.

As a specific scheme, it aims to issue it as a Type 3 electronic payment method that corresponds to a specific trust beneficiary right. In addition, the trustor requesting the issuance will be Binance Japan, and the trustor will be Mitsubishi UFJ Trust and Banking Corporation. The company plans to expand to multiple connected blockchains, including Ethereum and BNB Chain.

As the handling intermediary will be Binance Japan, the company will need to obtain a new license to handle electronic payment methods, which was newly established under the revised Payment Services Act.

The company's first goal is to issue a Japanese yen stablecoin in 2024.

Reference: Announcement
Image: Quoted from the announcement