• Japan’s largest bank – Mitsubishi UFJ Financial Group (MUFG) – is reportedly considering issuing global stablecoins via its blockchain platform.
• MUFG plans to introduce tokens tied to the value of the Japanese yen, as well as various foreign currencies such as the US dollar.
• The move has been met with enhanced scrutiny in Japan, especially after the collapse of the algorithmic stablecoin UST last year.
Japan’s Biggest Bank Might Launch Global Stablecoins
Mitsubishi UFJ Financial Group (MUFG), Japan’s largest finance institution, is exploring the possibility of issuing global stablecoins through its blockchain platform Progmat. According to Tatsuya Saito — Vice President of Product at MUFG — these tokens will be tied to both the Japanese yen and foreign currencies such as the US dollar.
Enhanced Scrutiny for Stablecoins
The move has been met with enhanced scrutiny in Japan, particularly after the collapse of an algorithmic stablecoin called UST last year that resulted in multi-billion investor losses. The Japanese authorities recently recognized stablecoins as digital money but only allowed banks, money transfer agents or trust companies to issue them.
Japan Could Become a Hub for Stablecoins
Saito believes that Japan could eventually become a hub for stablecoin issuance due to inquiries from foreign organizations looking into this technology. He praised recent legislation which he believes could bring more stability and trust in digital assets and cryptocurrencies.
MUFG’s Blockchain Platform Progmat
MUFG intends to use its blockchain platform Progmat when launching its global stablecoin initiative. This platform provides access to services geared towards businesses seeking better security and control over their financial activities, including payments and settlements using digital assets like cryptocurrencies and other related technologies like distributed ledgers (DLTs).