MUFG is in discussions with numerous partners about utilizing its Progmat blockchain.
Legislation has been established in Japan to encourage the usage of stablecoins.
The largest bank in Japan, Mitsubishi UFJ Financial Group Inc (MUFG), is in negotiations with worldwide stablecoin issuers to create its tokens on its own blockchain network.
Moreover, Japan’s stablecoin legislation, which permits licensed banks, trust organizations, and authorized money transfer agents to issue these cryptocurrencies, went into force on June 1. To issue stablecoins pegged to international currencies like the US dollar. MUFG is reportedly in discussions with numerous partners about utilizing its blockchain platform Progmat.
Moreover, in the crypto market, stablecoins serve an important function as a safe haven for investors’ money. Especially, during transactions involving more volatile tokens. Stablecoins are digital currencies that aim to keep their value consistent. Often by being anchored to the US dollar and backed by fiat currency or other assets. The total value of stablecoins in circulation is about $130 billion now.
No Plans of Releasing Own Stablecoin
Furthermore, as stablecoins have grown in prominence, authorities have increased their oversight of the industry. Legislation has been established in Japan to encourage the usage of stablecoins, digital currencies that are 100% backed by fiat cash in a stable, transparent currency.
MUFG’s Vice President of Product Tatsuya Saito said that the Japanese banking behemoth is considering a scenario in which its Progmat might be used to issue security tokens on behalf of third parties. And there are no plans to release its own stablecoin at this time.
Currently, MUFG is having conversations on stablecoins with many companies in Japan, including financial institutions, entertainment companies, and others. Also, Saito continued by saying that queries are pouring in from foreign financial institutions. As a result, Japan may become the leading issuer of stablecoins.