Japanese banking giant MUFG goes stablecoin

Mitsubishi UFJ Financial Groupthe largest bank from Japandiscusses with companies behind large stablecoins to enable token issuance on its blockchain platform.

While a new legislation for stablecoins recently came into effect in JapanMitsubishi UFJ Financial Group offers major issuers of this type of asset to use its platform Progmat to mine chips.

The bill passed in June by the Japanese authorities defines stablecoins as “currency”. digital currency “and is designed to protect investors. Only registered banks, money transfer agents and trust companies are authorized to issue them. With this new regulatory framework, Japanese regulators are promoting stablecoins backed entirely by fiat currency reserves.

Issuers and users can feel secure using stablecoins. stablecoins now that the legislation is in force […] The fact that stablecoins can be denominated in dollars and other currencies under the regulations paves the way for the issuance of tokens for overseas use,” said the financial institution’s vice-president product Tatsuya Saito in an interview, clarifying that MUFG had no plans to issue its own stablecoin for the time being.

The Japan has become one of the first major powers to regulate stablecoins. In Asia, Hong Kong is also planning to introduce rules for these tokens. The market capitalization of the largest stablecoin, USDTtoday exceeds 80 billion dollars.

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According to the Financial Stability Board, many stablecoins do not meet its standards. Visit FSB will finalize its recommendations in this area later this year.

In March, finance ministers and central bankers of the G20 discussed the regulation of stablecoins. A global tightening of the rules is taking shape.

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