Japanese Banking Giant MUFG Eyes Rolling Out Worldwide Stablecoins

MUFG is engaging with popular stablecoin issuers to offer these tokens through its blockchain network Progmat.

According to Bloomberg, Mitsubishi UFJ Financial Group (MUFG), the largest bank on Japanese soil, is discussing with various firms, including leading stablecoin providers, to issue these digital assets via its Progmat platform.

The bank’s product vice president Tatsuya Saito acknowledged that MUFG was eyeing minting stablecoins pegged to fiat currencies, such as the U.S. dollar, using its network. He said this was in line with the Japanese stablecoin law that became effective on June 1.

The legislation is among the top nations because it permits Japan’s trust companies, registered monetary transfer agents, and licensed banks to issue stablecoins.

Stablecoins have risen in popularity thanks to various advantages like low transfer charges. Furthermore, investors use them when trading cryptocurrencies with high volatility.

When asked which stablecoin providers MUFG was engaging with, Saito did not give specific details. Nevertheless, he disclosed that the bank talked to various entertainment companies and financial and non-financial institutions about stablecoin projects.

Japan Seeks to be a Stablecoin Hub

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