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Tuesday, January 31, 2023

Mitsubishi UFJ (NYSE: MUFG) Intends to Issue its Own Stablecoin

Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG) is intending to launch its Stablecoin to modernize its financial operations. Japan’s largest bank in terms of assets, which is based in Tokyo, has fully adopted blockchain technology and its application for business purposes, while the cryptocurrency will have to face operational charges.

Presently, in Japan, Stablecoin projects are expected to accelerate the acceptance of blockchain technology in the securities trading industry. The Japanese Trust Bank, Daiwa Securities, and SBI are among the other banks that have encouraged the usage of the technology. The Mitsui Stablecoin will be connected to the London Metal Exchange’s gold price. Sumitomo Mitsui (NYSE: SMFG) Banking will ensure the payment of the ZPG token, which is worth one gram of gold.

Furthermore, Stablecoin is anticipated to be strictly regulated in Japan. As a result, the Mitsubishi UFJ Trust token, which is set to launch in 2023, may be subject to regulatory scrutiny before its final distribution. Even though companies are increasingly accepting cryptocurrencies, the Japanese government is split on Stablecoin. Some officials are concerned that this type of digital asset would have a significant negative impact on the country’s financial ecosystem.

Additionally, the Mitsubishi token is expected to bring a significant increase to the bank’s payment procedures because it will be able to rapidly settle securities transactions. In Japan, such operations can take up to 48 hours and cost a lot of money. The financial services company intends to reduce such charges and simplify its payment operations by launching a Stablecoin.

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