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Mitsubishi UFJ Trust Will Launch a Stablecoin to Speed Up Settlement Processes
Mitsubishi UFJ Trust, situated in Tokyo, seeks to strengthen its financial services by embracing blockchain technology and introducing a stablecoin.
Mitsubishi UFJ Trust, a financial services corporation, seeks to improve its transaction system by incorporating blockchain technology for trading and a cryptocurrency for payments. As a result, according to a new rumour, it will establish a stablecoin pegged to the value of the Japanese yen.
Mitsubishi Stablecoin
According to a recent Nikkei Asia story, Mitsubishi UFJ Trust – a Tokyo-based bank with over $1.5 trillion in assets under management – is looking to enter the realm of crypto by releasing its own digital currency. The financial product will be a form of stablecoin linked to the Japanese yen.
The token will allow the institution to improve its payment process by allowing it to settle securities transactions promptly. In Japan, similar monetary procedures currently take a few days and cost tens of millions of dollars per year. Many people believe that using a stablecoin will eliminate those expenditures.
Furthermore, the programme should encourage the use of blockchain technology in securities trading. In collaboration with Daiwa Securities and SBI, the Japanese Trust Bank has pushed its use.
Digital securities allow customers more flexible investment options. For example, blockchain technology has transformed traditional assets such as real estate or corporate bonds into goods that can be purchased in tiny quantities, making retail investments possible.
Japan, one of the world's most industrialised economies, is a prominent player in the cryptocurrency business. Simultaneously, residents have recently shown an increased interest in the asset class. Digital transactions increased by more than half in 2021 compared to 2020, totalling more than 103 trillion yen ($900 billion).
Stablecoins May Be Subject to Strict Regulation
It is safe to expect that Mitsubishi UFJ Trust's proposal will face regulatory scrutiny before it is launched. Last summer, some Japanese officials expressed concern that stablecoins could disrupt Japan's financial environment and, as a result, should be rigorously regulated.
"With worldwide advancements in digital currencies moving so quickly," one of them observed, "Japan can no longer leave things unchecked."
The Financial Services Agency (FSA) formed a section to oversee cryptocurrency regulation in 2020. Shortly after, the Ministry of Finance considered expanding the number of employees required.
The potential regulation may benefit Japan's central bank, which plans to issue a CBDC. Trials are likely to begin this year, with the product's initial distribution scheduled for 2026, according to Governor Haruhiko Kuroda.
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By Crypto PiratesMitsubishi UFJ Trust, situated in Tokyo, seeks to strengthen its financial services by embracing blockchain technology and introducing a stablecoin.
Mitsubishi UFJ Trust, a financial services corporation, seeks to improve its transaction system by incorporating blockchain technology for trading and a cryptocurrency for payments. As a result, according to a new rumour, it will establish a stablecoin pegged to the value of the Japanese yen.
Mitsubishi Stablecoin
According to a recent Nikkei Asia story, Mitsubishi UFJ Trust – a Tokyo-based bank with over $1.5 trillion in assets under management – is looking to enter the realm of crypto by releasing its own digital currency. The financial product will be a form of stablecoin linked to the Japanese yen.
The token will allow the institution to improve its payment process by allowing it to settle securities transactions promptly. In Japan, similar monetary procedures currently take a few days and cost tens of millions of dollars per year. Many people believe that using a stablecoin will eliminate those expenditures.
Furthermore, the programme should encourage the use of blockchain technology in securities trading. In collaboration with Daiwa Securities and SBI, the Japanese Trust Bank has pushed its use.
Digital securities allow customers more flexible investment options. For example, blockchain technology has transformed traditional assets such as real estate or corporate bonds into goods that can be purchased in tiny quantities, making retail investments possible.
Japan, one of the world's most industrialised economies, is a prominent player in the cryptocurrency business. Simultaneously, residents have recently shown an increased interest in the asset class. Digital transactions increased by more than half in 2021 compared to 2020, totalling more than 103 trillion yen ($900 billion).
Stablecoins May Be Subject to Strict Regulation
It is safe to expect that Mitsubishi UFJ Trust's proposal will face regulatory scrutiny before it is launched. Last summer, some Japanese officials expressed concern that stablecoins could disrupt Japan's financial environment and, as a result, should be rigorously regulated.
"With worldwide advancements in digital currencies moving so quickly," one of them observed, "Japan can no longer leave things unchecked."
The Financial Services Agency (FSA) formed a section to oversee cryptocurrency regulation in 2020. Shortly after, the Ministry of Finance considered expanding the number of employees required.
The potential regulation may benefit Japan's central bank, which plans to issue a CBDC. Trials are likely to begin this year, with the product's initial distribution scheduled for 2026, according to Governor Haruhiko Kuroda.
Support us!