Today MUFG’s Trust arm announced a joint study with Binance Japan to explore the crypto exchange issuing public blockchain stablecoins in Japanese Yen and other currencies. MUFG founded the Progmat blockchain tokenization platform, which also includes the Progmat Coin stablecoin platform. Progmat is now jointly owned by other firms such as Japan’s second and third largest banks SMBC and Mizuho.
In addition to issuing multiple currency stablecoins, the stablecoins will not be restricted to Japanese users. Hence Japan could become Binance’s stablecoin issuance base. In February, the New York State Department of Financial Services (NYDFS) instructed Paxos Trust to stop issuing the Binance USD (BUSD) coin. The expected launch date of the Japanese Binance stablecoins is 2024, subject to Binance Japan’s receipt of an Electronic Settlement Methods Transaction Business Provider license.
In June, Japanese legislation came into force supporting different types of stablecoins, including bank issued and trust issued. Where the stablecoin is issued by a trust such as Mitsubishi UFJ Trust, it allows non licensed issuers, and no KYC is required for stablecoin transfers. Additionally, the reserve assets are ringfenced. This is similar to the Paxos Trust solution.
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