Mitsubishi UFJ Financial Group (MUFG) (TIKER: MTU.NYSE), the largest bank in Japan and the fourth largest in the world, plans to launch its own cryptocurrency exchange and issue its own digital currency - the MUFG Coin, Bitconist.com reported.
MUFG has already notified the Financial Services Agency (JFSA) on the decision to decision. The idea is that the new cryptocurrency will be kept pegged at around 1 Japanese yen.
By controlling the exchange where people can trade this MUFG Coin, the bank could suppress drastic fluctuations in its price so it can be used for shopping, settlements and remittances stably.
While MUFG only envisions its coin used to make stable transactions in Japan, once the cryptocurrency will be out in the wild global traders can use it for other uses as well.
The bank is reportedly working on another service for Japanese cryptocurrency traders, MUFJ Trust –that will keep client holdings in accounts which can link to exchanges but without sending the money to their control.
The service will also monitor accounts for suspicious activity and uncommon transactions, which could get flagged for inspection instead of being processed.
The service, which will be available just for Bitcoin (EXANTE: Bitcoin) at first, is expected to launch in April 2018 or as soon as the JFSA recognizes Bitcoin as an asset that can be placed in a trust.