Mitsubishi UFJ Trust is planning to launch its Yen pegged stable coin to bring a better efficient payment system.
Besides the adoption of crypto because of its volatility, the world is also moving toward blockchain technology adoption in every aspect, so that we can take all the possible benefits which are possible with blockchain technology. At present US dollar pegged stable coins are under huge use cases in the crypto industry and these are also motivating the banks to adopt stablecoins or create their stable coins.
On 7 February, a report of Nikkei Asia confirmed that Mitsubishi UFJ Trust (MUFJ), the largest bank of Japan, is planning to launch a stable coin. Stablecoin will be pegged by sovereign fiat currency Yen and the use of stablecoin will be focused on the instant settlement of securities transactions, which usually take a few days to complete under traditional payment methods.
The report also noted that MUFJ may launch its stable coin in 2023 because this is still an initial plan of the bank to bring a cost-effective and better settlement system under compliance. So obviously development and launching will take huge time.
In December 2021, the Financial Services Agency, the financial watchdog Agency of Japan, announced that all the institutions which are authorized with FSA will be able to launch their stable coin.
The announced rule by FSA will come into effect from spring of this year. After the rule effect, MUFJ will work on its project more fastly to introduce its fast payment system in efficient and fast Securities trading.
Nikkei also reported that MUFJ is working at its best to push the adoption of blockchain technology-based securities. For the same, the Bank partnered with SBI and Daiwa Securities.
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