Binance is gearing up to introduce stablecoins pegged to the dollar, euro, and yen in the Japanese market.
Next year’s launch will materialize thanks to a collaboration with Mitsubishi UFJ Financial Group’s (MUFG) trust banking division, as shared by Takeshi Chino, Binance Japan’s chief, during a chat with Bloomberg.
The primary objective for Binance Japan is to roll out these three stablecoins, but they are also considering expanding their offerings by 2024.
Both Binance and MUFG are already immersed in exploring how best to issue and implement these digital coins.
This strategic move by Binance was influenced by Japan’s recent legislation in June, which provided a clear legal framework for stablecoins.
Stablecoins are gaining popularity due to their potential in ensuring quicker transactions and settlements.
Japan’s Stablecoin Arena Might Surge to $34 Billion
Tatsuya Saito, a senior executive at MUFG, suggests that Japan’s stablecoin market might expand significantly, potentially touching 5 trillion yen ($34 billion). This could represent nearly a quarter of the current global estimate.
MUFG is actively in talks with various stakeholders about leveraging its blockchain platform, Progmat, to produce stablecoins linked to foreign currencies.
For Binance to successfully launch these stablecoins, it must first secure a license in Japan, specifically as an electronic transaction method provider, as mentioned in their official statement.
Upon their debut, these stablecoins will be available for crypto trading, and there’s also a possibility they might be integrated into payment solutions, added Chino.
For context, Binance marked its official entry into Japan with the inauguration of Binance Japan K.K. in August.
Back then, the platform highlighted its wide range of offerings to Japanese crypto enthusiasts, boasting about 30 tokens ready for spot trading.
Interestingly, Binance Japan was formerly known as Sakura Exchange BitCoin (SEBC) until Binance’s acquisition in November 2022.
A Surge in Stablecoin Endeavors in Japan
Japan’s decision to greenlight the issuance of stablecoins by licensed entities has triggered an influx of businesses mulling over the idea of launching their own digital tokens.
Case in point, Orix Bank, a prominent Japanese banking institution, is considering releasing its stablecoins.
Orix is set to initiate trials for stablecoins linked to the yen, dollar, among others, this October, with sights on a 2024 debut.
These digital coins are projected to be backed by traditional currency deposits and will operate on the Japan Open Chain blockchain, a product of Tokyo’s G.U. Technologies and its allies.
Similarly, Circle, the brand behind the renowned USDC stablecoin, has hinted at launching a stablecoin in Japan.
In a statement this past July, Circle’s CEO, Jeremy Allaire, voiced his optimism about Japan emerging as a substantial market, especially if there’s a rise in stablecoin usage in international trade and global business activities.