Mitsubishi UFJ Trust and Banking Corporation (MUFG) Prepares to Launch Japan’s First Compliant Stablecoin
Mitsubishi UFJ Trust and Banking Corporation (MUFG) is preparing to make history in Japan’s digital finance world. The country’s largest trust bank has now entered the final phase before officially launching the first stablecoin that fully complies with local regulations.
The stablecoin will be pegged to the Japanese yen (JPY) and built on the Progmat Coin platform, a digital infrastructure system specifically designed to allow licensed financial institutions to issue and manage stablecoins safely and legally.
Since the Japanese government updated the Payment Services Act in mid-2023, the gap for traditional banks to enter the stablecoin market has been wide open. MUFG immediately stepped on the gas.
They realized that a moment like this would not come twice. Through its trust license, MUFG has become a pioneer that is now paving the way for banks and other institutions to issue stablecoins that are not just digital tokens, but legal tender protected by law.
Japan Moves to Give Bitcoin Full Legal Recognition
On the other hand, CNF previously reported that the Japanese authorities, in this case the Japan Financial Services Agency (FSA), are currently working on a revision to the Financial Instruments and Exchange Act. The goal is clear: to give full legal recognition to crypto assets like Bitcoin.
No longer seen as mere digital speculation instruments, but as legal financial products—like stocks or bonds. Just imagine if Bitcoin were in the same category as government bonds. Regulations would be tighter, yes, but public trust would also be boosted.
Furthermore, the FSA has also just proposed that digital assets be divided into two categories. The first type is intended for tokens used in project fundraising, while the second type includes decentralized crypto assets like Bitcoin and Ethereum.
This move is no small talk; Japan seems to want to ensure that its approach to the crypto world is more organized, transparent, and in line with global trends.
MUFG Teams Up to Streamline Cross-Border Crypto Settlements
Interestingly, MUFG is not alone. They have also partnered with a number of strategic partners, such as Bitbank, SBI Holdings, and GMO Aozora Net Bank.
There are even plans for international collaboration, especially with developing countries, to use this stablecoin in cross-border trade settlements. The goal? Avoiding the high costs and slow processes of the traditional banking system. Have you ever waited three days for an international transfer? Well, MUFG wants to cut that down to seconds.
Meanwhile, from the private industry side, there is also Remixpoint—an energy consulting firm that is currently being widely discussed. In February, this company increased its crypto holdings by more than 8,000% in nine months.
The amount almost touched 10 billion yen. They use crypto as a hedge against yen depreciation. Not only that, Remixpoint has also started to be active in digital currency transactions.
If in the past they only talked about electricity and energy, now they are talking about blockchain and volatility. Judging from all these steps, Japan is re-polishing its image in the global crypto space.