Japan’s 3 Megabanks to Jointly Issue Stablecoins

Tokyo, Oct. 18 (Jiji Press)–Japan’s three megabanks are planning to jointly issue corporate-use stablecoins pegged to legal tender like the yen and the dollar, aiming to promote their use in the country. MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank intend to issue the stablecoins under a unified standard for use in corporate fund settlements, people familiar with the matter said Friday. The three megabanks, which have broad client bases, aim to accelerate the adoption of stablecoins in Japan by coordinating their efforts. They will begin demonstration tests of their stablecoins using a system developed by Tokyo-based fintech firm Progmat Inc. Major general trading house Mitsubishi Corp. is being considered as the first user of the planned stablecoins for its settlements. Stablecoins are digital payment instruments that utilize blockchain technology, promising a one-to-one conversion with fiat currencies, unlike conventional cryptocurrencies that are subject to significant price volatility. Their wider use can lower money transfer-related transaction fees and administrative burdens shouldered by companies. END [Copyright The Jiji Press, Ltd.]