Binance Japan is collaborating with Japan’s largest banking group to develop more fiat-pegged stablecoins, boosting fiat liquidity.
Binance Japan has teamed up with Japan’s largest banking group, Mitsubishi UFJ Trust and Banking Corporation, to develop more fiat-pegged stablecoins, the companies announced today.
Binance Japan is the Japanese subsidiary of the world’s largest crypto exchange, launching just last month. Japan’s Prime Minister, Fumio Kishida, is a supporter of Web3 and famously called digital finance “new capitalism”.
Binance CEO Changpeng Zhao (CZ) took to X to reveal the announcement, writing simply, “More stablecoins coming.”
The partnership will use the bank’s Progmat Coin platform to launch new stablecoins pegged to the Japanese yen and other currencies. The collaboration comes three months after Japanese regulators updated the nation’s stablecoin rules, permitting banks and regulated crypto providers to issue stablecoins.
“We believe that the new stablecoin from this collaboration will be a step forward in advancing the Web 3.0,” said Mitsubishi UFJ vice president of product and founder of Progmat Tatsuya Saito. “The impact of having the most secure stablecoin functioning within this ecosystem is immeasurable.”
Takeshi Chino, general manager at Binance Japan, added, “Stablecoins have important use cases in the broader financial ecosystem – from a lower-cost and instantaneous cross border trade settlement for business clients, to an on and off ramp to buy and sell other cryptocurrencies seamlessly for retail investors.”
The companies plan on launching their stablecoin operations by the end of 2024.
“Bro, we already have enough”
X, formerly Twitter, is the de-facto home of the crypto community. Many users responded to CZ’s tweet expressing disappointment, with the general consensus being that there are “already enough” stablecoins on the market.
CZ directly responded to the comment affirming that “more stablecoins bring in more fiat liquidity”.
Binance Customer Support also chimed in, stating that stablecoins are an essential part of the digital currency ecosystem “due to their ability to provide stability in a highly volatile market”.
“They make up an important part of our offerings,” they said, “helping users manage volatility risks. Also, the occurrence of more stablecoins on different fiat currencies raises wide crypto adoption and supports freedom of money.”
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.