Binance has unveiled an ambitious plan to launch stablecoins in Japan, denominated in the dollar, euro, and yen. This strategic move is scheduled for the upcoming year and results from a collaborative effort with Mitsubishi UFJ Financial Group’s trust banking division.
Notably, Takeshi Chino, Binance Japan’s general manager, shared these developments during an interview with Bloomberg.
Furthermore, Binance Japan’s initial objective is to roll out these three stablecoins. As there’s also the possibility of expanding their offerings in 2024. Moreover, the collaboration between Binance and MUFG has already begun the process of exploring the issuance and integration of these stable digital currencies.
Fortunately, this announcement follows Japan’s recent enactment of legislation. This legislation provides legal clarity for stablecoins, affirming their status in the country. Therefore, Stablecoins are recognized for their potential benefits, such as facilitating swifter money transfers and efficient settlements.
Meanwhile, Binance officially entered the Japanese market through the launch of Binance Japan K.K. in August. At that time, the exchange asserted its position as the platform offering Japanese crypto traders access to the largest array of tradable tokens, with 30 tokens available for spot trading.
Additionally, It’s worth noting that Binance Japan represents a rebranding of the Japanese crypto exchange Sakura Exchange BitCoin (SEBC), which Binance acquired in November 2022.
Orix Bank and Circle Leading The way To Launch Stablecoins In Japan
The legalization of stablecoin issuance by licensed entities in Japan has spurred interest among several companies. They are contemplating entering the market by introducing these digital tokens.
One such company is Orix Bank, a prominent Japanese financial institution. They are reportedly in the exploration phase for issuing stablecoins in the country. Orix aims to initiate testing of stablecoins denominated in yen, dollar, and other currencies in October. Their targeted launch is set for 2024.
These stablecoins will be collateralized by fiat deposits and leverage the Japan Open Chain blockchain, developed by Tokyo-based G.U. Technologies and its partners.
Furthermore, Circle, the company behind the USDC stablecoin, plans to introduce a stablecoin in the Japanese market. Circle’s CEO, Jeremy Allaire, emphasized Japan’s potential as a substantial market if stablecoin adoption gains traction in cross-border trade and global commerce.