- Leading crypto exchange Binance, teams up with MUFG in a bid to strengthen international adoption.
- In the long term, both parties will launch a stablecoin, designed to increase the adoption of Web3 across Japan.
The Japanese arm of the Binance exchange is looking to expand its reach at a global scale. Despite the ongoing lawsuit with the U.S. SEC, Binance is actively seeking to build ties with other top international institutions.
According to an official statement, Mitsubishi UFJ Trust and Banking Corporation (MUTB) and Binance Japan Inc (Binance Japan) are carrying out a joint study. Both platforms aim to work towards the issuance of new stablecoins pegged to fiat currencies like the Japanese yen and other foreign currencies.
If successful, the move could aid in the revival of the Japanese yen, which has been on a continuous decline for the past year. According to a recent Reuters report, the Japanese yen has hit an 11-month low against the U.S. dollar.
This comes not long after the Yen suffered from the dwindling interest rate in the Bank of Japan, as it revealed it was going to support the country’s economy until inflation dropped to a specific level.
The announcement further disclosed that both parties will make use of the Progmat Coin” platform, which caters to the issuance and management of stablecoins. Progmat Coin is also very well aligned with the existing laws and guidelines in Japan.
The joint study is expected to guide both companies to the final stage, where they can successfully launch a new stablecoin. The stablecoin is expected to play a significant role in the adoption of Web3 in Japan.
Binance and MUTB officials spotlight the significance of the new development
Speaking on the relevance of the new development, Takeshi Chino, General Manager of Binance Japan affirms the importance of stablecoins in Japan, through the Progmat platform. He further asserted.
Stablecoins have important use cases across the broader financial ecosystem – from a lower-cost and instantaneous cross border trade settlement for business clients, to the facilitation of trading other cryptocurrencies seamlessly for retail investors – stablecoins fill an important financial services need and are crucial for the success of Web 3.0 adoption.
In a similar manner, Tatsuya Saito, Founder and CEO of Progmat Inc, Vice President of Product of MUTB expressed belief in the new stablecoin expected to launch as a result of the collaboration.
He admits that the move is a step forward in the advancement of Web 3.0. Progmat, is a neutral infrastructure that facilitates the insurance of different kinds of stablecoins. He added.
We have already announced the other stablecoin project with several Japanese financial institutions as joint issuance applicants, and we are working with several other partners equally on deals in addition to this announced initiative.
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