Mitsubishi UFJ Trust and Banking, Japan’s largest bank said that it plans to launch a yen pegged stablecoin in 2023. Nikkei also reports that the stablecoin, called Progmacoin will facilitate clearing and settlements for digital securities.
Mitsubishi UFJ Trust and Banking has deployed Progmacoin for digital currency settlements on the SBI and SMBC digital security exchanges. SBI and SMBC have already been scheduled to go live in this year.
Mitsubishi UFJ Trust and Banking are looking to do a few things by deploying a stablecoin resolution layer. One of these goals is to accelerate fund delivery for such trades and scale up Japan’s tokenized security market. Mitsubishi UFJ Trust stated that using a stablecoin settlement for digital securities will reduce fund delivery costs.
The enactment in Japan of the revised Settlements and Payment System Act saw the introduction of Mitsubishi UFJ Trust’s stablecoin. Settlements and Payment System Act is designed to facilitate fund settlements between banks and financial institutions.
There are reports that Japanese financial regulators may also be considering additional enactments in light of Mitsubishi UFJ Trust’s plans to issue Progmacoin starting in 2023. They want to limit domestic stablecoin issuance.
Mitsubishi UFJ Trust and Banking, Japan’s largest financial institution Mitsubishi UFJ Financial Group, is the trust banking arm.
bestadmin
