Japan's Financial Conglomerate to Issue Stablecoin in 2023
Main page News, Japan, Stablecoins, Regulations

Mitsubishi UFJ Trust and Banking Corporation, a trust banking arm of the Mitsubishi UFJ Financial Group, is working on a yen-pegged stablecoin that is scheduled to be launched in 2023.

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According to Nikkei, the stablecoin called "Progmacoin" will be used for securities trading and as a payment instrument. The Osaka-based financial conglomerate also plans to utilize blockchain for trading non-traditional securities. However, it remains unclear when exactly MUFJ plans to issue a stablecoin.

Last December, iHodl reported that Japan is developing new restrictions that would only allow banks and wire transfer services to issue stablecoins. It is expected that Japan's Financial Services Agency (FSA) will introduce the legislation this year. The FSA also seeks to tighten regulations to fight money laundering. Cryptocurrency business like wallet providers involved in stablecoin transactions will also be brought under the agency's oversight.

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The tightening came after Haruhiko Kuroda, Governor of the Bank of Japan, said that the cryptocurrency market remains a dangerous place as its volatility still "extraordinarily high." Kuroda also doubts that cryptocurrencies are even used as a means of settlement.

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