Japan’s largest bank, Mitsubishi UFJ Trust and Banking said it is looking to launch a yen-pegged stablecoin in 2023. Furthermore, Nikkei reports that the stablecoin, dubbed Progmacoin, will also facilitate the clearing and settlements of digital securities.
Mitsubishi UFJ Trust and Banking will deploy Progmacoin to settle digital currencies on the SBI and SMBC digital securities exchange. SBI and SMBC are already on schedule to go live this year.
By deploying a stablecoin settlement layer, Mitsubishi UFJ Trust and Banking is looking to achieve a few things. Major among these is the acceleration of fund delivery for such trades, while also scaling up Japan’s tokenized securities market. In addition, Mitsubishi UFJ Trust also stated that using a stablecoin settlement layer for digital securities will cut down fund delivery costs.
Mitsubishi UFJ Trust’s stablecoin arrives amid the enactment of Japan’s revised Settlements and Payment System Act. The Settlements and Payment System Act aims to make fund settlements across banks and financial institutions more seamless.
In light of Mitsubishi UFJ Trust’s plans to start issuing Progmacoin in 2023, there are also reports of added enactments from Japanese financial regulators. The regulators seek to impose strict limits on domestic stablecoin issuance.
Mitsubishi UFJ Trust and Banking is the trust banking arm of Japan’s largest financial institution Mitsubishi UFJ Financial Group.
Image Credits: Pixabay
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