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

The trust banking arm of Mitsubishi UFJ plans to use blockchain technology for securities trading with the stablecoin acting as a payment instrument.

AccessTimeIconFeb 7, 2022 at 1:02 p.m. UTC
Updated May 11, 2023 at 7:14 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Mitsubishi UFJ Trust is set to issue a stablecoin as a means of payment to enable instant settlement of securities transactions, according to a report by Nikkei.

  • The trust banking arm of Mitsubishi UFJ, Japan's largest bank by assets, is planning to use blockchain technology for securities trading and set up the stablecoin as a payment instrument.
  • Mitsubishi UFJ is looking to expedite the settlement process, which now takes a couple of days, saving millions of dollar by making it instantaneous. In this sense, it will be similar to JPM Coin by U.S. banking giant JPMorgan, which is focused on speeding up wholesale payments such as bond transactions.
  • The stablecoin will be pegged to the Japanese yen.
  • Banks and other financial institutions will be allowed to issue stablecoins next year under new legislation designed to limit the issuance of such digital currencies by private companies.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.