Japan’s Biggest Bank to Issue Yen-Pegged Stablecoin for Settlement: Report

According to Nikkei, Mitsubishi UFJ Trust is planning to launch a stablecoin as a form of payment to facilitate quick settlement of securities transactions.

Mitsubishi UFJ’s trust banking division, the country’s largest bank by assets, intends to deploy blockchain technology for securities trading and to establish the stablecoin as a payment mechanism.

Mitsubishi UFJ is aiming to speed up the settlement procedure, which currently takes a few days, in order to save millions of dollars. In this regard, it will be comparable to JPM Coin, which is being developed by US financial giant JPMorgan and is aimed at speeding up wholesale payments such as bond transactions.

The stablecoin will be tied to the Japanese yen.

Banks and other financial institutions will be permitted to create stablecoins next year under new laws to limit private enterprises from issuing such digital currency.