When the cryptocurrency giant, Binance, meets with the leading Japanese banking institution Mitsubishi UFJ, the result can only be one: a breakthrough in the world of cryptocurrencies. Here’s a closer look at their ambitious collaboration, aimed at introducing a new stablecoin to the market.
Binance Japan, the Japanese branch of the world’s largest cryptocurrency exchange, recently announced a collaboration with Mitsubishi UFJ Trust and Banking Corporation (MUFG), Japan’s largest banking group with assets valued at $3.1 trillion. A key point of this collaboration is the creation of a new stablecoin, a stable cryptocurrency. This surprising merger was made possible by Binance’s re-entry into the Japanese market in August 2023, after overcoming regulatory challenges.
However, what distinguishes this initiative is the use of the Progmat Coin platform. It was introduced in 2022 and was designed to facilitate the creation and management of stablecoins tied to the Japanese yen (JPY). Such a move was possible due to regulatory changes introduced by the Japanese authorities in June 2023, which opened the doors to the development of stablecoins.
The Progmat Coin platform has already gained recognition in many local banks, such as Mizuho Bank and SBI Holdings. Thanks to it, Japanese banks will have the opportunity to issue stablecoins on reputable public blockchains, such as Ethereum or Polygon. Additionally, an expansion into other blockchain ecosystems is anticipated in the future.
Binance and Mitsubishi UFJ set ambitious goals for themselves, planning to start stablecoin-related activities by the end of 2024. The main goal of this collaboration is to introduce new stablecoins tied to the Japanese yen and other global currencies. The head of Binance Japan sees this collaboration as a key link connecting the Japanese economy, the evolving blockchain space, and the broad, global Binance ecosystem.
Binance’s collaboration with Mitsubishi UFJ is a significant step towards integrating traditional finance with the rapidly developing blockchain technology. The new stable cryptocurrency has a chance to become an important element of the global economy, connecting traditional banking with the future of finance.
Photo by Kanchanara on Unsplash
