Binance seeks to launch stablecoins in Japan with MUFG unit

BINANCE is seeking to launch stablecoins denominated in the US dollar, euro and yen in Japan next year, as the embattled global crypto exchange pushes into the nation’s nascent market.

Binance Japan wants to introduce the three tokens and potentially more in 2024 to its partnership with Mitsubishi UFJ Financial Group’s (MUFG) trust banking arm, Takeshi Chino, the unit’s general manager, said. The two firms have started jointly studying the issuance, according to a statement.

Japan legalised stablecoin issuance by licensed firms in June, prompting Orix and other companies to weigh launching the tokens that purportedly offer financial advantages such as speedier money transfers and settlements. MUFG has been discussing with multiple parties about using its blockchain platform, Progmat, to mint stablecoins tied to foreign currencies.

Japan’s stablecoin market has the potential to grow to as large as five trillion yen (S$45.92 billion), roughly a quarter of the estimated current global market, Tatsuya Saito, MUFG’s vice-president of product, said.

The issuance plan requires Binance to gain a licence in Japan as an electronic settlement methods transaction business provider, according to the release. With the issuance, users can use stablecoins to trade crypto-currencies and potentially undertake payment services, Chino said. BLOOMBERG